Many Austin investors bought single-family rentals in Pflugerville, Manor, Hutto and Kyle during the boom, often on separate loans with different maturities. A blanket loan can bring them together, but in Austin the portfolio's tax bill, not the rent, usually decides how much the blanket can borrow.
In short: LendingStreet offers blanket portfolio loans that put five or more Austin-area rentals, each 1 to 8 units, under one loan with one closing and one payment. The loan qualifies on the portfolio's combined rent against its combined payment, with release provisions for selling a property and portfolio pricing. Because Texas property taxes are high and investors get no homestead exemption, Austin blankets often work best at somewhat lower leverage than in other metros.
Most Austin rental portfolios are in the suburbs and edge communities where prices are lower than in central Austin: Pflugerville, Manor, Hutto, Round Rock, Leander, Liberty Hill and Georgetown to the north and east, and Kyle, Buda, San Marcos, Del Valle and Lockhart to the south. Many of these homes were built from the 2000s on, often in master-planned subdivisions.
Inside the city, smaller portfolios of older homes and duplexes are found in East Austin, Montopolis, Dove Springs, St. Johns, Windsor Park and the neighborhoods near the airport.
Newer suburban homes bring lower repair bills and simpler insurance, but also HOA rules and, often, MUD taxes. Older in-city homes carry higher land values and more maintenance. A portfolio that mixes both can balance those trade-offs, and portfolio-level DSCR lets the stronger homes support the rest.
A home in the Austin suburbs can be taxed by the county, city, school district, community college district and, in many newer subdivisions, a municipal utility district. The combined rate is high by national standards, and investors do not get the homestead exemption or the homestead appraisal cap. On a portfolio, that adds up to thousands of dollars a month.
Because DSCR compares rent to the full payment, including taxes, a portfolio that looks fine on rent alone may need lower leverage to clear 1.0x. The worked example shows how that plays out.
Austin saw a wave of new apartment and single-family construction, and rents in many submarkets softened from their peak while prices also came down. For a portfolio owner, that means lease renewals may not rise as fast as they did a few years ago, and some homes may be leased below what the seller's pro forma assumed.
Use current leases and realistic market rents. Lenders typically use the lower of actual rent and market rent for each property.
Concessions matter too. If you offered a free month to sign a lease, the effective rent is lower than the stated rent, and underwriters may adjust for it. Give us the real numbers up front so the blanket is sized correctly the first time.
This example is illustrative and not a quote. An investor owns six single-family rentals in Pflugerville, Hutto and Kyle, valued at $2,160,000 together. Rents total $14,100 a month. Taxes, with no homestead exemption, are $3,780 a month for all six, and insurance is $1,020.
At 70% LTV the loan is $1,512,000 and portfolio DSCR is about 0.93x, below the 1.0x standard minimum. At 65% it is about 0.98x. At 60% LTV the loan is $1,296,000, the total payment is about $13,641 and DSCR is about 1.03x, which clears. A sub-1.0 DSCR program is another option for the higher-leverage scenarios.
| Item | 70% LTV | 65% LTV | 60% LTV |
|---|---|---|---|
| Loan amount | $1,512,000 | $1,404,000 | $1,296,000 |
| Estimated principal and interest | $10,315 | $9,578 | $8,841 |
| Taxes and insurance | $4,800 | $4,800 | $4,800 |
| Total monthly payment | $15,115 | $14,378 | $13,641 |
| Combined rent | $14,100 | $14,100 | $14,100 |
| Portfolio DSCR | 0.93x | 0.98x | 1.03x |
Texas lets property owners protest appraised values each year with the appraisal district. Many Austin-area investors protest routinely, and a lower appraised value means a lower tax bill and a better DSCR at the next refinance. Lenders will use the current bill, so a successful protest before you apply can help.
If any homes are in a municipal utility district, the MUD tax is part of the tax bill and counts in the payment. Check each property's record for MUD or public improvement district lines.
Insurance is the other Texas variable. Hail and wind deductibles on suburban Austin policies are often a percentage of the dwelling coverage, so a portfolio with several older roofs can carry higher premiums. Get quotes for every home before you set the target loan amount.
Release provisions let you sell one home and pay down an agreed release price, usually a percentage above that home's allocated share of the loan. The remaining homes must still meet the program's DSCR standard. In Austin's market, where some owners plan to sell a few homes as prices recover, setting workable release terms at the start matters.
See /blanket-loan-release-clause.html for how release prices are typically set.
A blanket brings one payment and portfolio-level qualification, but ties the homes together. Separate DSCR loans let each home stand on its own, which can help if you plan to sell several soon. Compare the options at /blanket-loan-vs-individual-dscr-loans.html.
Many Texas investors own rentals in Austin and San Antonio, Dallas-Fort Worth or Houston. Some programs can include properties in more than one metro or state in a single loan; see /multi-state-portfolio-loans.html. Texas closings are handled by title companies, and insurance quotes should include wind and hail deductibles for every property.
Our investor loans are business-purpose loans on non-owner-occupied property. Send a rent roll with addresses, rents, tax bills, insurance and loan balances, and we will show the blanket at several leverage levels so you can see where the ratio lands. Call (877) 298-1001 or use the form below.
Five or more investment properties, each with 1 to 8 units.
Usually property taxes. Without homestead exemptions, the tax bill takes a large share of rent, so lower leverage may be needed to clear 1.0x.
Yes. Sub-1.0 programs exist for portfolios that fall short of 1.0x at the leverage you want.
Yes. Any MUD or PID tax on the bill is part of the payment.
Yes, through the release provision, as long as the remaining homes still qualify.
On some programs, yes, as part of a multi-metro portfolio.
No. The loan qualifies on the properties' rent.
On some programs, yes, subject to the portfolio's DSCR and cash-out limits. Texas homestead cash-out rules do not apply to investment property.
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