Walk Parkville, Frog Hollow, the South End or Barry Square and you will see block after block of three-family houses, many stacked flats built for factory and insurance workers a century ago. Hartford investors often own several, and that kind of portfolio is exactly what a blanket loan is built for.
In short: LendingStreet finances five or more Hartford-area investment properties, each 1 to 8 units, under one blanket DSCR loan qualified on the portfolio's combined rent. You get one closing, one payment, portfolio pricing and release provisions to sell a building later, with no W-2s or tax returns. Properties elsewhere in Connecticut, or in other states on some programs, can be included.
Hartford's signature rental is the three-family, often called a triple-decker: three stacked units, each a full floor, with front and rear porches. They line the streets of Parkville, Frog Hollow, the South End, Barry Square, Behind the Rocks and parts of Asylum Hill. Two-families are common too, along with the side-by-side six-unit buildings known locally as perfect sixes.
New Britain has a similar stock of two- and three-families, and East Hartford, Wethersfield and Manchester add two-families and single-family rentals. Many investors mix city three-families, which produce strong rent per dollar, with suburban properties that bring lower turnover.
Tenants come from Hartford's hospitals, the insurers and their service firms, state government, Pratt and Whitney and its suppliers, and the colleges. Larger three-bedroom flats in three-families often house families who stay for years, which helps occupancy across a portfolio.
A blanket loan compares the total rent of all the properties with one combined payment, including principal and interest, taxes, insurance and any HOA dues. Three-families tend to produce a lot of rent relative to price, which can lift a portfolio's ratio and leave room for a property or two that runs thinner.
Each building is still reviewed on its own for value, leases, condition and legal unit count, and a building with open code violations or a vacant unit may need attention before it joins the pool.
This example is illustrative and not a quote. An investor refinances five three-families and one two-family worth $1,965,000 in total, renting for $22,400 a month across 17 units. Taxes total $4,000 and insurance $1,450 a month.
At 70% of combined value the blanket loan is $1,375,500. Estimated principal and interest is about $9,383, the payment is about $14,833 and the portfolio DSCR is about 1.51x. The strong city three-families leave plenty of cushion over the 1.0x standard minimum, which gives room for a future vacancy or tax increase.
| Property | Value | Rent | Taxes |
|---|---|---|---|
| Three-family, Parkville | $330,000 | $3,900 | $700 |
| Three-family, Frog Hollow | $310,000 | $3,750 | $680 |
| Three-family, South End | $345,000 | $4,050 | $720 |
| Three-family, Barry Square | $320,000 | $3,750 | $690 |
| Three-family, New Britain | $360,000 | $4,050 | $650 |
| Two-family, East Hartford | $300,000 | $2,900 | $560 |
| Total | $1,965,000 | $22,400 | $4,000 |
Connecticut requires towns with 25,000 or more residents to have a fair rent commission, which can hear tenant complaints about rent increases or conditions considered harsh and unconscionable. Hartford, New Britain, East Hartford, West Hartford and Manchester all fall in that group. Plan rent increases in reasonable steps, document the condition of each unit and keep leases and notices organized.
Lenders underwrite the rent in place or a supportable market rent. A rent roll that relies on large planned increases may not count those increases. Build the portfolio's numbers on what tenants pay today, and treat future increases as upside rather than as the basis for the loan size.
Connecticut towns assess property at a 70% assessment ratio and revalue at least every five years, and Hartford's mill rate has long been among the highest in the state. A revaluation can shift every bill in a portfolio at once, so use each property's current bill and watch for upcoming revaluation years.
Connecticut's real estate conveyance tax, with state and municipal shares, is generally paid by the seller. A refinance does not trigger it, but retitling properties into an LLC can raise questions, so check with your attorney first.
A release clause lets you sell one building and keep the rest on the loan by paying down its allocated share plus a premium set in the loan documents. Terms vary by program. In the example, the East Hartford two-family carries about $210,000 of the loan; with an illustrative 20% premium, the release payment would be about $252,000.
Hartford's three-families are often more than a hundred years old. Lenders, insurers and city inspectors look at porches, egress, electrical service, heating systems and lead-based paint. Keep records of repairs and upgrades for each building.
Heating is a common question. Many three-families still have one boiler for the building or older oil systems, and the landlord pays for heat. That cost does not enter the DSCR, but it does affect what you keep, and conversions to separate systems can help both rents and insurance.
If you own buildings that are each large enough for an individual loan and plan to sell some soon, separate DSCR loans may suit you better. If you want one payment and one escrow, or need strong buildings to carry weaker ones, a blanket loan usually works well in Hartford. Send your property list through the form below or call (877) 298-1001.
Include addresses, values, unit counts, rents, tax bills and current loan balances. We will look at the pool as a whole, flag any building that needs attention first, and show what the portfolio can support. If a building is not ready, because of a vacancy or open code item, we can suggest whether to fix it first or leave it out of the pool for now.
Five or more investment properties, each with 1 to 8 units.
Yes. Two-, three- and four-family buildings, and buildings up to 8 units, can all be included.
Yes. Six-unit buildings are residential for our programs, though leverage can vary.
Lenders count rent in place or supportable market rent. Large planned increases may not count, and tenants can challenge harsh increases.
Yes. Properties across Connecticut can be included, and other states on some programs.
Yes. A release clause sets the paydown. Terms vary by program.
Yes, up to 75% of combined value on some programs, if the portfolio clears the DSCR minimum.
No. The loan qualifies on the portfolio's rent, supported by leases, a rent roll and the appraisals or valuations on each building, not on your personal income.
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