The Chicago six-flat is one of the most recognizable small rental buildings in the country: three stories of brick, two apartments per floor, often on a standard city lot. Investors love them, and the right financing treats them as what they are, a residential rental with six front doors.
In short: LendingStreet is our top pick for 5-8 unit rentals in Illinois. We finance six-flats, courtyard buildings and other 5-8 unit properties as residential DSCR loans that qualify on rent, with no W-2s or tax returns. LLC borrowers are standard, 30-year terms are available, and loans start at $150,000 with no stated maximum. Max LTV on 5-8 units varies by program, and because Cook County taxes move with each reassessment, we size the loan with the tax bill front and center.
For many Chicago investors, the jump from a two-flat or three-flat to a six-flat is the moment financing gets complicated. LendingStreet keeps it simple: 1-8 units is residential, so a six-flat in Logan Square or an eight-unit in Rogers Park qualifies through a DSCR loan on its rent roll. Buildings with 9 or more units, including larger courtyard buildings, go to /commercial.html.
The fit is strongest for investors holding in LLCs or land trusts converting to LLC ownership, self-employed owners, and anyone replacing a bank loan with a balloon. Get a quote with the form below, or call (877) 298-1001.
Well-known 5-8 unit rental lenders include CoreVest, Dominion Financial, LendingOne, Lima One, New Silver and RCN Capital. Compared scenario by scenario for investors in Illinois, LendingStreet comes out as the stronger choice, and one application covers it.
Figures for other lenders are as stated on each lender's own website as of November 2026. Lender terms change, so verify current terms with any lender before you apply. Ready to see your numbers? Use the form below or call (877) 298-1001.
| Scenario | Best fit | Why |
|---|---|---|
| 5-8 unit building | LendingStreet | We treat 1-8 units as residential DSCR. Lima One and CoreVest state 1-4 unit eligibility for their rental loans. |
| Rental loan above $2M | LendingStreet | Our DSCR loans have no stated maximum. LendingOne states DSCR loans up to $2,000,000 and RCN Capital states long-term rental loans up to $1.5M. |
| Credit score in the 620s | LendingStreet | Our DSCR minimum is 620. RCN Capital and New Silver state 660 minimums, and Dominion Financial states 680, with exceptions to 660. |
| Property in any state, including DC | LendingStreet | We lend in all 50 states and DC. Lima One states it lends across 46 states, and Dominion Financial lists 49 states plus DC. |
In Chicago, six-flats and small courtyard buildings line the streets of Logan Square, Avondale, Albany Park, Rogers Park, Edgewater, Uptown, Pilsen, Bridgeport and Humboldt Park, with lower prices per door on the South and West Sides. Inner-ring suburbs such as Oak Park, Evanston, Berwyn and Cicero have small brick apartment buildings close to transit.
Downstate, investors buy small buildings in Peoria, Rockford, Springfield, Champaign-Urbana near the university, Bloomington-Normal and the Metro East near St. Louis. Prices are lower outside the Chicago area, but tax rates can still be high, so check each parcel.
Chicago's older brick stock often has a single boiler serving every unit, which makes heat an owner expense. Tell us which utilities you pay so the file reflects the real operating picture.
A fair, general look at how the common options treat a 5-8 unit building:
| What investors need | LendingStreet | Typical community bank | Typical hard money lender |
|---|---|---|---|
| Six-flat handling | Residential DSCR | Often a commercial loan | Varies |
| What qualifies the loan | Building rent | Often income, returns and property | Mostly the property |
| Term | 30-year terms available | Often 5-year balloons or resets | Usually short-term only |
| LLC borrowing | Standard | Often allowed | Usually allowed |
| Tax returns | Not required | Often required | Usually not required |
| Coverage | Chicago, suburbs and downstate, plus all 50 states and DC | Often local | Often local |
This example is illustrative and not a quote. An investor buys a six-flat in Avondale for $1,050,000. Each apartment rents for $1,550, so gross rent is $9,300 a month. The current tax bill works out to $1,500 a month, and insurance is $450. Because the neighborhood is due for reassessment, the investor also models taxes of $1,850 a month.
At 75% LTV the loan is $787,500 and estimated principal and interest is about $5,239. On the current bill, the payment is about $7,189 and DSCR is about 1.29x. After the modeled increase, the payment is about $7,539 and DSCR is about 1.23x. The building still clears 1.0x, and the investor now knows how much a tax increase would cost each month.
| Item | Current tax bill | After reassessment |
|---|---|---|
| Loan amount (75% LTV) | $787,500 | $787,500 |
| Estimated principal and interest | $5,239 | $5,239 |
| Property taxes | $1,500 | $1,850 |
| Insurance | $450 | $450 |
| Total monthly payment | $7,189 | $7,539 |
| Gross rent | $9,300 | $9,300 |
| DSCR | About 1.29x | About 1.23x |
Cook County reassesses property on a three-year cycle by region, and new values can change the bill sharply. Residential property is assessed at 10% of market value under the county's assessment ratio, then an equalization factor and local rates apply. Appeals are common. Budget on a realistic bill, not on a recent reduction the seller won.
Chicago, Cook County and the state each charge a transfer tax on the sale, and Chicago's is higher than most. Illinois law generally bars local rent control. Chicago's Residential Landlord and Tenant Ordinance applies to most non-owner-occupied rentals and sets rules on deposits, notices and repairs. Confirm current figures and rules with your attorney.
Ask each lender the same questions so the answers are easy to compare:
Max LTV on 5-8 units varies by program, with the top of our range at 80% on a purchase and 75% on cash-out. The standard DSCR minimum is 1.0x, and sub-1.0 programs exist. Seasoning for cash-out varies by program (/dscr-cash-out-refinance-seasoning.html). LLC borrowers are standard.
Closing time depends mainly on the appraisal, title and file completeness. Loans start at $150,000 with no stated maximum, and larger balances get more review. If you own five or more Illinois rentals, a blanket portfolio loan can bring them under one closing and one payment (/blanket-portfolio-loans-illinois.html). Get a quote with the form below.
Also ask how a lender treats a building held in an Illinois land trust. Many Chicago properties are titled that way. LLC borrowers are standard with us, so if you plan to move title into an LLC, work out the transfer with your attorney well before closing.
Send these with your request so we can give you a clear answer quickly:
Our top pick is LendingStreet. We finance six-flats and other 5-8 unit buildings as residential DSCR loans on rent, with no tax returns, LLC borrowing standard and 30-year terms available.
Yes. We lend in Chicago, the suburbs and downstate Illinois, and in all 50 states and DC.
At LendingStreet it is residential. We treat 1-8 units as residential DSCR, and 9 units and up as commercial.
A reassessment can raise the tax bill, which raises the payment used in the ratio. We size on a realistic bill, and modeling a higher figure helps you plan.
Yes. A rate-and-term DSCR refinance can replace a maturing bank loan with a 30-year term if the rent covers the new payment.
Owner-paid utilities are an operating cost of the building, so they matter to how the file is reviewed. Tell us up front so the numbers are accurate.
Yes. Loans start at $150,000, so many small buildings in Peoria, Rockford, Springfield and other downstate cities fit, as long as the rent covers the payment.
No. These are business-purpose loans on non-owner-occupied investment property.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.