Chicago portfolios are built on two-flats and bungalows. A typical investor might own a few brick two-flats on the Southwest Side, a bungalow or two in the city's bungalow belt and a rental in Berwyn or Oak Lawn, each financed separately and each with its own Cook County tax bill.
In short: LendingStreet offers blanket portfolio loans that combine five or more Chicago-area investment properties, each with 1 to 8 units, into one loan with one closing and one payment. We qualify on the combined cash flow of the portfolio rather than personal income, LLC borrowers are standard, and release provisions let you sell individual properties over time. In Cook County, property taxes usually decide how much leverage a portfolio can carry.
Most Chicago blanket loan candidates are made up of brick two-flats, frame two-flats and Chicago bungalows, plus some three-flats and small six-flat buildings. Each area brings a different price, rent and tax profile.
| Area | Common rental | What investors like |
|---|---|---|
| Brighton Park, McKinley Park, Gage Park | Brick and frame two-flats | Rent from two units at modest prices |
| Chatham, Avalon Park, Ashburn | Chicago bungalows | Solid brick construction, family tenants |
| Portage Park, Belmont Cragin, Jefferson Park | Bungalows and two-flats | Northwest Side demand, transit access |
| Albany Park, Rogers Park, Uptown | Two-flats, three-flats, six-flats | Dense rental demand near the lake and CTA |
| Berwyn, Cicero, Oak Lawn | Two-flats and bungalows | Suburban schools and commutes, lower prices than the lakefront |
A blanket loan compares combined rent with the combined payment: principal and interest on the single loan plus each property's taxes, insurance and any association dues. Individual properties do not all need to clear 1.0x, but the total does.
In Cook County, the tax line is heavy. Residential property is assessed using a 10% assessment ratio before the state equalizer and local rates are applied, and investors do not receive the homeowner exemption, so the tax bill on a two-flat can rival a big share of one unit's rent. A portfolio that looks fine on rent alone can come in thin once actual bills are added.
That is why Chicago blanket loans often land below the maximum leverage. Bringing the loan amount down a bit, or leaving out a property with an outsized tax bill, can make the whole portfolio work.
This example is illustrative and not a quote. An investor owns three two-flats, two bungalows and a suburban ranch worth a combined $2,130,000, collecting $15,400 a month in rent. Combined property taxes are about $3,250 a month and insurance about $1,300.
At 65% of value the blanket loan is $1,384,500. Estimated principal and interest on a 30-year term is about $9,562, so the total payment is about $14,112 and portfolio DSCR is about 1.09x. Taxes alone are about 21 percent of the rent, which is why the example stops at 65% rather than pushing leverage higher.
| Property | Value | Monthly rent | Monthly taxes |
|---|---|---|---|
| Brighton Park two-flat | $385,000 | $2,900 | $560 |
| McKinley Park two-flat | $420,000 | $3,100 | $610 |
| Chatham bungalow | $255,000 | $1,950 | $390 |
| Portage Park bungalow | $360,000 | $2,350 | $520 |
| Berwyn two-flat | $410,000 | $3,000 | $690 |
| Oak Lawn ranch | $300,000 | $2,100 | $480 |
| Total | $2,130,000 | $15,400 | $3,250 |
The Cook County Assessor reassesses one third of the county each year on a three-year rotation: the city, the north suburbs, and the south and west suburbs. After a reassessment, bills can jump unevenly from one neighborhood to the next. Second-installment bills have also arrived late in some recent years, which can catch escrow accounts short.
For underwriting, we use the actual current bill and look for exemptions that will not apply to an investor. Your escrow should be sized for the next bill, not the last one.
Some investors appeal assessments on their rentals after a reassessment. A successful appeal can lower future bills and improve the ratio on a later refinance, but underwriting uses the bill in place today, not an appeal that has not been decided.
Chicago's Residential Landlord and Tenant Ordinance sets detailed rules on security deposits, interest on deposits, notices and lease terms for most rentals, and mistakes can be costly. Illinois law prevents cities from adopting rent control. Many Cook County suburbs, including Berwyn and Cicero, require rental licenses and periodic inspections, and some require inspections at sale.
A blanket loan does not change those rules, but it does mean a licensing problem or code issue on one property can hold up the whole closing. Gather licenses and inspection records before you apply.
In the city, check for open building code violations and vacant building registrations on each address. Those show up in title and city records and can delay a multi-property closing if they surface late.
Release provisions set the payment needed to remove one property, usually its allocated loan balance plus a release premium set by the program. The rest of the portfolio stays on the loan. Because Chicago properties vary so much in tax burden, check that the remaining portfolio still clears the program's DSCR test after a release, especially if you sell a low-tax property and keep a high-tax one.
Our blanket loan release clause guide explains how allocated balances and release amounts are usually set.
Separate DSCR loans keep each property independent, which makes selling one simple. A blanket loan gives you one payment, one maturity date and portfolio pricing, and it lets strong two-flats carry a weaker bungalow. If you plan to keep most of the properties for years, a blanket is often easier to run.
Chicago investors who are still buying often add properties with individual DSCR or bridge loans, then fold them into a blanket refinance once the portfolio reaches a size worth consolidating.
Send a schedule with addresses, unit counts, values, rents, loan balances, current tax bills and insurance, plus leases and any suburban rental licenses, using the form below or by calling (877) 298-1001. We will run portfolio DSCR at a few leverage levels and show release amounts for each property. If a property with an unusually high tax bill is holding the portfolio back, we will flag it.
Yes. Any non-owner-occupied rentals with 1 to 8 units can be combined, as long as there are five or more properties.
Usually Cook County taxes. Investors do not get the homeowner exemption, so actual bills are often higher than the seller's. Reassessments can also raise bills unevenly by neighborhood, so we use the current bill for each property.
Yes. Properties in Chicago and the suburbs can be combined, and some programs allow properties in other states as well.
Your escrow is set on the expected bill. Late or higher bills can lead to escrow adjustments, so budget for the next bill, not the last one.
Yes. Missing licenses or failed inspections can hold up closing, so gather them early.
Yes. You pay its release amount, and the rest of the portfolio stays on the loan.
No. We qualify on the portfolio's rental income, not your personal income. We do review credit, with a 620 minimum score, and verify funds for closing costs and reserves.
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.