In Washington, DC, a five-property portfolio might be a few rowhouses, a converted two-unit house and a condo or two. Values are high and the District's tenant laws are among the most detailed in the country, so a DC blanket loan rewards careful preparation.
In short: Yes, LendingStreet finances blanket portfolio loans in DC: five or more investment properties, each with 1 to 8 units, under one loan with one closing and one payment, qualified on the portfolio's combined rent instead of your tax returns. In the District, rent stabilization, the Tenant Opportunity to Purchase Act and high recordation and transfer taxes all shape a portfolio loan, and the small-landlord rent control exemption is generally tied to owning four or fewer units.
With a blanket loan, five or more rentals (houses, condos, duplexes, fourplexes or small 5 to 8 unit buildings) are financed together under one note. That means one application, one closing, one servicer and one monthly payment, with pricing set for the portfolio.
The underwriter adds up the rent on every property and compares it with the single payment, which includes principal, interest, taxes, insurance and HOA dues. A combined ratio of 1.0x meets the standard minimum, even if one or two properties fall short on their own. The loan qualifies on rent, not personal income, with a 620 minimum credit score and LLC ownership allowed.
DC rental portfolios are built from rowhouses, two- to four-unit conversions and condos. Investors buy in Petworth, Brightwood, Columbia Heights, Brookland, Trinidad, Eckington and Capitol Hill, and at lower prices east of the Anacostia River in Congress Heights, Anacostia and Deanwood.
Many rowhouses have been converted into two units, and a legal basement unit can add meaningful rent. Make sure each conversion has the right permits and certificate of occupancy, because an unpermitted unit may not count as rent.
The District charges both a recordation tax and a transfer tax on deeds, and recordation tax also applies to deeds of trust on many loans, so closing costs on a DC portfolio are high. Ask the title company to estimate each property and the loan separately.
Residential property is taxed at the residential class, while vacant and blighted properties can be taxed at much higher rates, which matters if a unit sits empty. Rentals do not get the homestead deduction. Condo dues count in the payment, so include each building's current fee.
This example is illustrative and not a quote. An investor holds 5 rentals in Northwest and Northeast DC with a combined value of $3,390,000 and combined rent of $20,300 a month. Taxes and insurance across the group total about $3,200 a month.
At 65% of combined value, the blanket loan is $2,204,000. Estimated principal and interest on 30-year amortization is about $15,411 a month, so the full payment is about $18,611 and the portfolio DSCR is about 1.09x, above the 1.0x standard minimum.
On its own, the Columbia Heights condo would come in near 0.96x on its allocated share, but because the loan is underwritten on the whole pool, the stronger properties carry it.
The example uses 65% leverage rather than the program maximum because DC values run high relative to rents; actual leverage varies by program and balance.
| Property | Value | Monthly rent | Taxes + insurance | Allocated loan |
|---|---|---|---|---|
| Petworth rowhouse | $780,000 | $4,200 | $620 | $507,100 |
| Brookland 2-unit house | $920,000 | $5,600 | $740 | $598,100 |
| Trinidad rowhouse | $690,000 | $3,900 | $560 | $448,600 |
| Congress Heights 2-unit | $520,000 | $3,700 | $450 | $338,100 |
| Columbia Heights condo | $480,000 | $2,900 | $830 | $312,100 |
| Portfolio total | $3,390,000 | $20,300 | $3,200 | $2,204,000 |
Many DC rentals in older buildings are covered by rent stabilization. The exemption for small landlords is generally tied to owning four or fewer rental units, so an investor with five or more may not qualify for it; confirm with DC counsel. Selling a tenant-occupied property can trigger tenant purchase rights under TOPA, which affects how quickly a property can be released and sold. Every rental needs a basic business license, and DC limits short-term rentals to a host's primary residence.
DC's housing code inspections, lead disclosure rules and the requirement to give tenants specific notices before rent increases all affect how quickly rents can move. Underwrite in-place rents. Rowhouses east of the Anacostia River cost less but carry older systems, while Capitol Hill and Petworth homes cost more and run tighter coverage, so many DC portfolios mix both to balance the combined ratio.
Each property in the loan carries an allocated share of the balance. When you sell one, you pay its release price, which the loan documents set, often at or above the allocated amount, and the lien comes off that address only.
Releases keep a blanket loan flexible, but the remaining pool has to keep supporting the payment. Plan the order of sales so the strongest cash flow properties stay in the loan as long as you need them.
Individual DSCR loans keep every property separate, which is useful for sales, refinances and estate planning. A blanket loan trades some of that flexibility for simplicity: one closing, one payment and portfolio-level qualification.
For many DC investors the deciding factor is cash flow. If a few properties would struggle to qualify alone, pooling them can help. If every property qualifies easily, separate loans may cost little in convenience.
Investors who own in DC and in Maryland or Virginia can sometimes combine everything into one multi-state blanket loan. Programs vary, and each property is closed under its own state's recording rules.
Pull these together before you request a quote, and use the form below when you are ready.
Yes. We finance five or more DC rental properties, each with 1 to 8 units, under one loan with one closing and one payment. Our investor loans are business-purpose loans on non-owner-occupied property, starting at $150,000.
It may. Many older rentals are covered, and the small-landlord exemption is generally tied to owning four or fewer units. Confirm each property's status with DC counsel.
If a property is tenant-occupied, TOPA can give tenants a right to make an offer before a sale, which adds time. Plan release timing around it.
DC limits short-term rentals to a host's primary residence, and our loans are on non-owner-occupied property, so DC STRs generally do not fit. Long-term rentals do.
Five or more investment properties, each with 1 to 8 units. Properties with 9 or more units are commercial and are covered on our multifamily pages.
Standard programs look for a combined ratio of 1.0x, meaning total rent covers the single payment including taxes, insurance and HOA dues. Sub-1.0 programs exist for some situations.
No. The loan qualifies on the properties' rent. You need a 620 or higher credit score, reserves and entity documents if the properties are in an LLC.
Yes, on some programs. Cash-out goes up to 75% LTV on standard DSCR programs, and portfolio cash-out can be lower depending on balance and property mix.
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