In the Kanawha Valley, a typical rental house costs less than many lenders' minimum loan. That makes the blanket portfolio loan less of an upgrade and more of a necessity for investors building scale.
In short: LendingStreet offers blanket portfolio loans that combine five or more rentals in the Charleston, West Virginia area, each with 1 to 8 units, into one loan qualified on combined portfolio cash flow. A blanket gives you one closing, one payment, portfolio pricing and release provisions for selling individual properties, and it solves the problem of houses that are individually too small for the $150,000 DSCR minimum. No W-2s or tax returns are required, and LLC borrowers are standard.
Charleston-area home prices are among the most affordable of any state capital. Many solid rental houses in St. Albans, Dunbar, Nitro and the West Side sell for $100,000 to $175,000, and rent for roughly $1,000 to $1,300 a month. That rent-to-price relationship is attractive to investors, but at those prices a single house often needs a loan under $150,000, the DSCR minimum.
Combine eight of them and the loan is comfortably above the minimum, the property count spreads vacancy risk, and the portfolio is managed as one asset.
It also helps with lender appetite. Small-balance loans on older houses in a slow-growth market are not every lender's favorite file, and investors here often end up with a patchwork of local bank notes, seller financing and private loans. A single blanket loan replaces that patchwork with one set of terms, one maturity and one escrow account, which also makes the portfolio easier to sell or refinance later.
Portfolios here usually run along the river and interstate corridors, where commuting to downtown Charleston, CAMC and the chemical plants is easy.
The underwriter adds the rent from every property and compares it with the blanket's principal and interest plus taxes and insurance on each property. If the total clears the program minimum, a weaker property can stay in the group. Each property gets its own valuation, and the combined value sets the leverage, which varies by program and portfolio size.
Appraisals in the valley can take time, because comparable sales for older houses on hillside streets are not always close by. Ordering valuations early and giving the appraiser access to every house, including occupied ones, keeps an eight-property closing moving. Have current leases and a rent roll ready for each address.
This example is illustrative and not a quote. An investor refinances eight houses across the Kanawha Valley worth $1,120,000 combined and renting for $9,200 a month. None of them would support a $150,000 loan alone. At 75% of combined value, the blanket loan is $840,000.
Estimated principal and interest is about $5,730 a month. Taxes are about $960 and insurance about $840 across the eight, for a combined payment of about $7,530. The portfolio DSCR is about 1.22x.
| Area | Type | Value | Rent |
|---|---|---|---|
| Kanawha City | Brick ranch | $165,000 | $1,250 |
| St. Albans | Single-family | $130,000 | $1,100 |
| Dunbar | Cape Cod | $120,000 | $1,050 |
| South Charleston | 2-story frame house | $145,000 | $1,150 |
| West Side | Older 2-story | $110,000 | $1,000 |
| Cross Lanes | Split-level | $160,000 | $1,250 |
| Nitro | Ranch | $125,000 | $1,100 |
| Elkview | Single-family | $165,000 | $1,300 |
| Total | 8 houses | $1,120,000 | $9,200 |
West Virginia assesses property at 60% of appraised value. Owner-occupied homes are Class II; rentals are Class III outside cities and Class IV inside cities such as Charleston, South Charleston, Dunbar, St. Albans and Nitro, both at twice the Class II levy rate. A portfolio that mixes city and unincorporated properties will have different tax rates across the schedule, so use each actual bill. Houses recently bought from owner-occupants may not yet show the higher class.
Budget those at the investor rate now so the combined payment does not rise after closing and squeeze the ratio.
Parts of the valley along the Kanawha and Elk rivers and their creeks fall in flood zones, and the 2016 floods are a reminder of the risk. A flood premium on one or two houses goes into the combined payment. Many valley houses are 60 to 100 years old, so collect roof ages, inspection notes and insurance quotes for each property before you apply.
Release provisions let you sell one house and pay down the blanket by an agreed amount, usually somewhat more than its allocated share of the loan, while the rest stays financed. The remaining properties generally need to keep meeting the ratio. Valley investors often sell to first-time buyers, so think about which homes you may sell before you set the terms. West Virginia charges a state and county excise tax on deed transfers, which reduces net proceeds on each sale.
In higher-priced markets, investors choose between the two based on flexibility. In the Kanawha Valley, the $150,000 minimum often makes the decision: properties too small for individual loans fit naturally in a blanket. Larger properties, such as fourplexes or homes in South Hills, can go either way. Our comparison guide covers the tradeoffs.
Our investor loans are business-purpose loans on non-owner-occupied property. Send a schedule with addresses, values, rents, existing balances, taxes and insurance. LendingStreet will size the blanket on combined cash flow and outline release terms. Some programs also allow properties in more than one market or state. Call (877) 298-1001 or use the form below.
Yes. The $150,000 minimum applies to the loan, not each house, so a group of lower-priced rentals can be combined.
Five or more investment properties, each with 1 to 8 units.
Yes. Properties inside and outside Charleston city limits can be combined, though their tax classes and rates differ.
Rentals inside municipalities are Class IV and outside are Class III, and local levies vary. Use each property's actual bill.
Yes. Release provisions let you pay down the loan by an agreed amount and sell one property.
No. The loan qualifies on combined rental cash flow. You need a 620 or higher credit score and reserves.
It depends mostly on valuations and title work for each house. Organized rent rolls, leases and access for the appraiser shorten the timeline.
They can be included. Flood insurance goes into the combined payment.
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