Durham investors who bought in the 2010s often own a string of renovated houses in Old North Durham, Walltown and East Durham, each on its own loan. A blanket loan can put five or more of them on one note, and in a market where prices have outrun rents, portfolio DSCR can make the math work.
In short: LendingStreet offers blanket portfolio loans for Durham investors with five or more rentals, each 1 to 8 units. The loan qualifies on the combined cash flow of the portfolio, closes once, carries portfolio pricing and includes release provisions for selling a property later. North Carolina's deed excise tax is customarily paid by the seller and does not apply to a refinance, so consolidation costs are mostly lender, appraisal and attorney fees.
Close-in neighborhoods hold much of Durham's investor-owned housing: Old North Durham, Duke Park, Cleveland-Holloway and Edgemont north and east of downtown; Walltown, Old West Durham and Lakewood near Duke; and East Durham and Southside, where renovated mill houses and newer infill homes sit side by side. Northgate Park and Watts-Hillandale add mid-century homes with larger yards.
South Durham and the areas near RTP add newer homes and townhomes, while some portfolios reach into Hillsborough, Mebane, Creedmoor and Butner for lower prices.
| Area | Typical holdings | What to watch |
|---|---|---|
| Old North Durham, Duke Park, Cleveland-Holloway | Renovated older homes | Post-revaluation tax bills |
| Walltown, Old West Durham, Lakewood | Bungalows near Duke | Prices high relative to rent |
| East Durham and Southside | Mill houses, infill homes | Rent levels by block |
| Northgate Park, Watts-Hillandale | Mid-century homes | Historic district rules in places |
| South Durham near RTP | Newer homes, townhomes | HOA dues and leasing rules |
Close-in Durham prices climbed faster than rents over the past decade, so many single properties come in near 1.0x on their own at full leverage. A blanket loan tests the ratio on the whole portfolio: combined rent divided by principal and interest on the single loan plus every property's taxes, insurance and HOA dues.
A house bought years ago at a low basis with a strong rent can carry a newer purchase that would be tight alone. That is often the difference between consolidating and leaving the newest purchase on short-term debt.
This example is illustrative and not a quote. An investor owns five houses and one duplex in Old North Durham, Duke Park and East Durham, with a combined value of $2,350,000 and combined rent of $14,000 a month. Taxes on the post-revaluation bills total $1,850 a month and insurance is $800.
A blanket refinance at 65% of value is $1,527,500. Estimated principal and interest on a 30-year term is about $10,420, so the total payment is about $13,070 and the portfolio DSCR is about 1.07x.
The lower leverage reflects Durham's price-to-rent reality. At 75% the portfolio would fall below 1.0x, so the investor chooses the loan size the rent can carry and keeps equity in the properties.
Even at the lower loan amount, the investor pays off three short-term renovation loans and two older bank loans, removes five maturity dates and moves to one amortizing payment. Raising the two weakest rents at renewal would add room in the ratio for a future cash-out.
| Item | Portfolio |
|---|---|
| Properties | 5 houses, 1 duplex |
| Combined value | $2,350,000 |
| Loan at 65% | $1,527,500 |
| Estimated principal and interest | $10,420 |
| Taxes and insurance | $2,650 |
| Total payment | $13,070 |
| Combined rent | $14,000 |
| Portfolio DSCR | About 1.07x |
Durham County reappraises on a multi-year cycle, and the most recent countywide revaluation raised many assessed values substantially, especially in the close-in neighborhoods investors favor. Properties inside city limits also pay a City of Durham tax. A portfolio schedule built from older bills can overstate the ratio.
If an assessment looks too high, the county has an appeal process with deadlines. A successful appeal lowers the tax line and helps the portfolio ratio at refinance.
Every blanket loan sets a release price for each property, usually its allocated loan amount plus an added percentage that varies by program. When you sell, you pay that amount, the property comes off the loan and the rest of the portfolio must still meet the ratio.
Durham investors sometimes sell a highly appreciated house and trade into something else. If that is in your plans, discuss release terms before closing. Our release clause guide explains how the numbers work.
Closings in North Carolina are handled by an attorney. The state excise tax on deeds, $1 per $500 of price, is customarily paid by the seller on a sale and does not apply to a refinance. On a blanket refinance, expect an appraisal on each property, title work on each parcel and one set of loan documents.
North Carolina prohibits local rent control, and Durham generally does not require every rental to be registered, though landlords follow the state Residential Rental Agreements Act and local housing code.
A blanket loan offers one closing, one payment and portfolio pricing. Individual DSCR loans keep properties separate, which can suit investors who sell often. In Durham, investors with several renovations maturing on short-term loans in the same year often find the blanket cleaner. Our comparison guide lays out both paths.
Long-time Durham owners often have large equity after the run-up in values. A blanket cash-out can pull some of it at once, up to 75% LTV on standard programs and often less on large balances, as long as the portfolio clears the ratio at the new payment. Seasoning varies by program. In Durham, the rent usually limits the loan before the LTV cap does.
Our investor loans are business-purpose loans on non-owner-occupied property. Send a property schedule with addresses, rents, balances, taxes and insurance. LendingStreet will run the portfolio ratio at a few loan sizes. Call (877) 298-1001 or use the form below. See also our North Carolina blanket loan page.
Five or more, each 1 to 8 units. Single-family homes, duplexes and small buildings can be combined.
Durham prices are high relative to rents, so the ratio usually limits the loan before the LTV cap does.
No. North Carolina's excise tax on deeds applies to transfers and is customarily paid by the seller.
The current bills after Durham County's revaluation, including the City of Durham tax for properties inside city limits.
Yes. You pay its release price and it comes off the loan, as long as the remaining portfolio meets the ratio.
Yes, on many programs, and some programs allow properties in more than one state.
Generally not. North Carolina limits local rental registration, but each property should meet Durham's housing code and have current leases.
Yes, up to 75% LTV on standard programs, often lower on large balances, if the portfolio clears the ratio.
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