Lexington's urban service boundary, in place since 1958, keeps new development inside a defined area and protects the horse farms around it. That limited land supply helps keep rental demand firm, and many local investors have built portfolios of houses near the University of Kentucky, in mid-century neighborhoods and in nearby towns such as Georgetown and Nicholasville.
In short: LendingStreet offers blanket portfolio loans that put five or more Lexington-area investment properties, each with 1 to 8 units, under one loan qualified on the portfolio's combined cash flow. You get one closing, one payment, portfolio pricing and release provisions to sell a single property later. Properties elsewhere in Kentucky, or in other states on some programs, can be included, and no W-2s or tax returns are needed.
Close to UK, investors own houses and duplexes in neighborhoods such as Pralltown, Columbia Heights, Kenwick, Bell Court and the streets off Euclid Avenue and South Limestone, renting to students, residents at UK HealthCare and staff. North of downtown, the North Limestone area has seen steady renovation. Mid-century ranches in Gardenside, Meadowthorpe, Southland and Castlewood rent to families and workers.
Outside Fayette County, Georgetown draws tenants from the Toyota plant, Nicholasville and Winchester offer lower prices, and Richmond near Eastern Kentucky University adds student demand. A blanket loan treats properties in different towns as one business.
| Area | Typical rental | What to check |
|---|---|---|
| Near UK (Pralltown, Columbia Heights, Kenwick) | Older houses and duplexes | Occupancy limits for unrelated tenants, condition |
| North Limestone and Northside | Renovated older homes | Renovation permits, insurance on older systems |
| Gardenside, Meadowthorpe, Southland | 1950s-60s ranches | Roofs, basements, sewer lines |
| Hamburg, Masterson Station | Newer single-family homes | HOA leasing rules |
| Georgetown, Nicholasville, Winchester | Single-family homes at lower prices | Appraisal comps, distance to jobs |
A blanket loan adds the rent from every property and divides it by one combined payment: principal and interest plus every property's taxes, insurance and any HOA dues. A house between student leases or with a higher insurance bill can be carried by stronger ones, as long as the whole group clears the program minimum.
Student rentals near UK often run on August-to-July leases, so a portfolio refinance in early summer may show turnover. Blending student homes with family rentals smooths the ratio. If most of your homes are student rentals, consider timing the refinance after fall leases are signed, so the rent roll shows full occupancy for the coming year.
This example is illustrative and not a quote. An investor owns three houses near UK, two Gardenside ranches, one Georgetown home and one duplex in Kenwick, seven properties with eight units. Combined value is $1,850,000 and combined rent is $13,250 a month. Taxes total about $2,100 a month and insurance about $875.
At 70% of value the blanket loan is $1,295,000. Estimated principal and interest is about $9,055, so the total payment is about $12,030 and portfolio DSCR is about 1.10x. Seven loans become one, with one escrow account and one maturity date.
| Item | Amount |
|---|---|
| Properties | 7 (8 units) |
| Combined value | $1,850,000 |
| Blanket loan at 70% | $1,295,000 |
| Estimated principal and interest | $9,055 |
| Taxes, all properties | $2,100 |
| Insurance, all properties | $875 |
| Total monthly payment | $12,030 |
| Combined monthly rent | $13,250 |
| Portfolio DSCR | About 1.10x |
Lexington's zoning limits how many unrelated adults can share a home in many residential zones, and enforcement around UK has been an ongoing issue. The appraiser and lender will use rent that matches legal occupancy, not a per-bedroom figure that exceeds it. Make sure each student home's rent is consistent with the rules before you include it in a portfolio.
Each property gets an allocated share of the blanket balance. To sell one, you pay a release amount set in your loan documents, often somewhat above that allocated share so the remaining portfolio stays strong. Terms vary by program; see /blanket-loan-release-clause.html.
Kentucky's deed transfer tax, $0.50 per $500 of value, is customarily paid by the seller and is modest compared with many states, which makes selling one property out of a portfolio less costly.
Kentucky assesses property at fair cash value through the county PVA, and Fayette, Scott and Jessamine counties each set their own rates. Kentucky's homestead exemption is limited to owners 65 and older or disabled, so investor bills usually track the seller's, adjusted for reassessment.
Insurers in central Kentucky ask about roof age, wind and hail exposure and, in some areas, sinkhole risk tied to the region's limestone. Collect current policies for every property.
Investors who bought near UK or in Gardenside years ago often hold substantial equity across several homes. A blanket cash-out refinance can draw on all of them at once, subject to leverage limits and seasoning rules; see /dscr-cash-out-refinance-seasoning.html. Proceeds can fund the next purchase inside the urban service area, where good rentals are scarce.
Separate DSCR loans keep each property independent, which may suit you if you plan to sell several soon. A blanket loan suits investors who plan to hold, want one payment and portfolio pricing and would rather manage one loan than seven. Compare both at /blanket-loan-vs-individual-dscr-loans.html.
Our investor loans are business-purpose loans on non-owner-occupied property. Send your schedule through the form below or call (877) 298-1001, and we will run the portfolio DSCR and show options alongside our Kentucky blanket programs.
Five or more investment properties, each with 1 to 8 units. Houses, duplexes and small buildings in Lexington and nearby towns can be combined in one loan.
Yes. Properties anywhere in the region can be in one loan, along with Kentucky properties elsewhere such as Louisville, and other states on some programs.
They can be included, but the rent used must match legal occupancy under Lexington's zoning. Turnover around August may affect the timing of a refinance.
The portfolio is tested as a whole, so one vacancy can be carried if combined rent still clears the minimum. Vacant units are usually counted at market rent from the appraisal, though programs differ.
Yes. You pay the release amount set in the loan documents, and that property comes off the loan while the rest stays in place. Terms vary by program.
The seller customarily pays Kentucky's deed transfer tax of $0.50 per $500 of value, though the contract controls.
Yes. A blanket cash-out refinance can draw equity from the whole group at once, subject to leverage limits and seasoning rules. Many Lexington investors use the proceeds to buy their next property inside the urban service area.
No. The loan is qualified on the portfolio's rent, not personal income, and the minimum credit score is 620.
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.