Denver investors who bought rentals a decade ago often have plenty of equity and modest debt. The question with a blanket loan here is rarely value. It is how much loan the portfolio's rent can carry.
In short: LendingStreet's blanket portfolio loans combine five or more Denver-area rentals, each with 1 to 8 units, into one loan with one closing, one payment and portfolio pricing. The loan qualifies on the portfolio's combined cash flow, with no tax returns, and release provisions let you sell a property without refinancing the rest. Because Denver rents are low relative to prices, most metro portfolios size on cash flow, often below the maximum LTV, and sub-1.0 DSCR programs exist for some files.
Few investors still buy single-family rentals in central Denver neighborhoods like Wash Park or the Highlands for cash flow. Portfolios tend to sit where price and rent line up better: Aurora, Montbello and Green Valley Ranch on the east side, Westwood, Athmar Park and Harvey Park on the southwest side, Lakewood and Wheat Ridge to the west, and Westminster, Thornton and Northglenn to the north.
Many long-time investors also hold older duplexes in Denver neighborhoods such as Baker, Sunnyside and Berkeley, bought years ago at much lower prices. Those add rent per property and appreciation but are the hardest to refinance at high leverage today.
The City and County of Denver now requires a residential rental license for long-term rentals, with an inspection by a licensed inspector. Every Denver property in a blanket should have a current license. Suburbs have their own rental licensing rules; Aurora, for example, runs a rental licensing and inspection program. Gather license numbers for each address before you apply.
Colorado law also changed for landlords in recent years, including statewide for-cause eviction requirements. Leases and rent rolls should reflect current law.
This example is illustrative and not a quote. An investor owns six rentals worth $3,255,000 combined, renting for $17,250 a month. Taxes average about $1,458 a month across the portfolio and insurance about $1,135.
At 75% of value the loan would be $2,441,250, with a total payment of about $19,247 and a DSCR of about 0.90x. At 70% the payment is about $18,137 and the DSCR about 0.95x. At 65%, a loan of $2,115,750, the payment is about $17,026 and the DSCR about 1.01x, which clears the 1.0x standard minimum.
Even at 65%, the investor accesses a large amount of capital on one closing, and the payment is one number instead of six.
| Property | Value | Rent | Taxes per month | Insurance |
|---|---|---|---|---|
| Aurora ranch | $520,000 | $2,650 | $225 | $190 |
| Lakewood split-level | $585,000 | $2,850 | $250 | $200 |
| Westminster two-story | $560,000 | $2,800 | $275 | $195 |
| Athmar Park duplex | $690,000 | $4,100 | $283 | $230 |
| Montbello ranch | $470,000 | $2,500 | $217 | $180 |
| Thornton townhome | $430,000 | $2,350 | $208 | $140 |
| Total | $3,255,000 | $17,250 | $1,458 | $1,135 |
Colorado's property taxes are moderate compared with many states, so in Denver the main constraint is the gap between prices and rents. The ratio, not the appraisal, usually sets the loan size. Programs with sub-1.0 DSCR options can stretch a bit further for some borrowers.
Colorado assessors revalue property in odd-numbered years, and the legislature has changed residential assessment rates several times recently. Plan for tax changes at the next reappraisal when you size the loan.
A release provision sets the amount you pay down to remove one property from the blanket. Release amounts are usually above the property's allocated share of the loan, and the remaining portfolio typically must still meet the program's ratio and leverage limits.
In Denver, investors often plan to sell older city duplexes into strong owner-occupant demand while keeping suburban single-family homes. Map that plan out before closing so the release schedule fits.
The Front Range sees frequent hail, and many Denver-area insurers now use percentage-based wind and hail deductibles. A portfolio of homes with older roofs can carry higher premiums. Track roof age for each property, and consider replacing the oldest roofs, often with impact-resistant shingles, before a refinance.
A blanket loan suits investors who plan to hold, want one payment and want weaker properties carried by stronger ones. Separate DSCR loans make more sense for properties you may sell soon, or where each property cash flows well on its own. Some Denver investors combine both: a blanket for suburban holds and individual loans for city duplexes.
Many Denver portfolios were financed over 10 or 15 years with a mix of conventional loans, local bank notes and seller carry. Some of those older loans carry low payments that a new loan cannot match. Before you refinance everything into one blanket, compare the blended payment you have today with the new one. Sometimes the best structure leaves a few low-payment loans in place and combines only the properties with maturing or higher-cost debt.
If the goal is to pull equity out to buy more, the combined ratio sets the ceiling. We can show how much capital the portfolio supports at 1.0x and at sub-1.0 options where they fit, so you can weigh cash out against cash flow.
Send a rent roll, rental license numbers, tax bills, insurance declarations and current loan balances through the form below, or call (877) 298-1001. We will show the combined ratio at several loan amounts so you can choose the balance that fits.
Five or more investment properties, each with 1 to 8 units, in Denver, its suburbs and on some programs other markets.
Rents are low relative to prices in much of the metro, so the payment at high leverage often exceeds the rent. The loan is usually sized to keep the combined DSCR at or above 1.0x.
Long-term rentals in the City and County of Denver require a residential rental license and inspection. Have them current, along with any suburban licenses.
Yes. You pay the release amount set in the loan documents, and that property comes off the lien.
Often. Some programs allow properties in several markets or states in one blanket. Ask about your list.
Yes. Cash-out goes up to 75% LTV on DSCR programs, but in Denver the ratio usually sets a lower amount.
No. The loan qualifies on combined portfolio cash flow, with a 620 minimum credit score and LLC borrowers standard.
Sometimes. Compare your current blended payment with the new blanket payment. It can make sense to combine only properties with maturing or higher-cost debt.
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