Billings landlords tend to own a mix: houses in the Heights, a duplex or two near downtown, and homes in Laurel or Lockwood. A blanket loan puts five or more of them on one note with one payment.
In short: LendingStreet offers blanket portfolio loans that combine five or more Billings-area rentals, each 1 to 8 units, into one loan with one closing and one payment. The loan qualifies on the portfolio's combined rent rather than your income, and release provisions let you sell one property without refinancing the rest. Portfolio pricing applies, and properties elsewhere in Montana or in other states can be included on some programs.
Many Billings investors built their holdings slowly, buying a house every year or two with a separate loan for each. By the fifth or sixth, the escrow accounts, insurance renewals and due dates add up. One blanket loan replaces them.
A blanket refinance can also pull equity from properties that have risen in value since purchase. Instead of separate cash-out refinances, each with its own appraisal and closing, you complete one transaction on the group and get one payment.
Consolidation also makes it easier to see the portfolio as a business. One statement shows the total balance, and one rent roll shows how the whole group performs, which helps when you plan the next purchase or decide which property to sell.
The Heights, north of the Yellowstone River and the Rims, has a large stock of modest single-family homes that rent to families and workers. The West End offers newer homes in subdivisions that attract longer-term tenants, sometimes at higher rents.
Near downtown, the North Elevation and South Side neighborhoods have older homes and duplexes. Many portfolios also include properties in Laurel, Lockwood and Shepherd, where prices can be lower and tenants commute into the city. Each property's flood zone, covenants and condition matter for the overall file.
A blanket loan adds the rent from every property and compares it with the combined payment: principal and interest on the single loan plus taxes and insurance on every property. The total must clear the program minimum, usually 1.0x.
That lets a strong property carry a weaker one, which is the main advantage over separate DSCR loans. It also means one under-rented or vacant property affects the whole file. Bring current leases or a rent schedule for every unit.
Below-market leases are common in older Billings portfolios where owners kept long-term tenants at old rents. Those leases count at their actual amount, so if several renew soon, raising rents to market before you apply can improve the ratio and the loan amount.
This example is illustrative and not a quote. An owner refinances seven rentals worth $2,045,000 with total rent of $12,750 a month. Taxes are $1,655 a month and insurance is $995.
At 70% of value the loan would be $1,431,500, with estimated principal and interest of about $10,009, a payment of about $12,659 and DSCR of about 1.01x, barely over the minimum. At 65% the loan is $1,329,250, principal and interest is about $9,294, the payment about $11,944 and DSCR about 1.07x, a more comfortable margin given Montana's reappraisal cycle.
| Property | Value | Monthly rent | Allocated loan at 65% |
|---|---|---|---|
| Heights house | $285,000 | $1,750 | $185,250 |
| Heights house | $270,000 | $1,700 | $175,500 |
| West End house | $340,000 | $2,000 | $221,000 |
| North Elevation duplex | $360,000 | $2,300 | $234,000 |
| South Side house | $215,000 | $1,450 | $139,750 |
| Laurel house | $280,000 | $1,750 | $182,000 |
| Lockwood house | $295,000 | $1,800 | $191,750 |
| Total | $2,045,000 | $12,750 | $1,329,250 |
Each property has an allocated share of the loan. The release clause sets the paydown needed to take it off the lien when you sell, often more than the allocation. Terms vary by program.
In the example, if the release price were 120% of the allocated amount, an assumption for illustration, selling the West End house would require paying down $265,200 against its $221,000 share. After the release, the remaining six properties must still meet the portfolio ratio, so the order in which you sell matters.
Montana reappraises residential property every two years, and the last few cycles raised values and bills across Yellowstone County. The state has also adjusted how it classifies and taxes residential property, including treatment of long-term rentals. Confirm the current classification and expected bill for each property with the Department of Revenue.
Because the cycle is short, budget with some margin. A portfolio that clears 1.01x today may not after the next reappraisal, which is why the example chooses 65%.
Properties in Laurel, Lockwood or Shepherd may fall under different local levies than properties inside Billings city limits, so the tax per dollar of value can differ across your portfolio. Use each property's actual bill rather than an average.
Hail is a regular part of Billings weather, and a portfolio means several roofs. Insurers may use percentage deductibles for wind and hail, and older roofs can raise premiums. A single landlord policy across the portfolio can simplify renewals.
Properties near the Yellowstone River or local creeks may sit in mapped flood zones and need flood insurance. Get a flood determination for every address.
Winter claims, such as frozen pipes in a vacant unit, are another reason to keep a local property manager or contact on call. Insurers and lenders both prefer portfolios with documented maintenance. Keep furnace service records and roof dates on file for every property.
Send a schedule with each address, unit count, rent, lease dates, value, taxes, insurance and loan balance. LendingStreet will run the portfolio at a few leverage levels, show which properties strengthen or weaken the ratio and suggest a structure.
If you have fewer than five properties, individual DSCR loans may fit better. Call (877) 298-1001 or use the form below to get a quote.
Five or more investment properties, each with 1 to 8 units.
Yes. Properties across Montana can be combined, and some programs include properties in other states.
No. The loan qualifies on combined rental income. We review credit, reserves, the leases and the condition and value of each property.
You pay the release price from the loan documents and the property comes off the lien. The others stay on the loan.
Higher assessed values can raise taxes and lower your portfolio DSCR. Budget with a margin above 1.0x.
Yes, up to program limits, as long as the portfolio still clears the minimum at the new payment.
Yes. Each property can have 1 to 8 units, so a portfolio can mix single-family homes, duplexes and small buildings under one loan.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the home or units must be rented to others.
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