Lubbock investors tend to own a lot of duplexes. Whole streets in south and southwest Lubbock were built with side-by-side duplexes, and student and young-family demand around Texas Tech keeps them leased. Once you own five or more, a blanket loan can put them, and any houses you own, under one loan.
In short: LendingStreet offers blanket portfolio loans for Lubbock investors with 5 or more rentals, each 1 to 8 units, under one loan qualified on the combined rent of the portfolio. You get one closing, one payment and release provisions so you can sell a property without refinancing the rest. Loans start at $150,000, LLC borrowers are standard, and because Texas property taxes are high, most Lubbock portfolios size best at moderate leverage.
A typical Lubbock portfolio grows one property at a time, often with a mix of local bank loans and DSCR loans with different maturities. Bringing them under one blanket loan simplifies payments and renewals and can free equity from properties that have gained value since purchase.
Lower prices also matter. A house worth $190,000 supports a loan close to the $150,000 minimum at a normal LTV. In a blanket loan the minimum applies to the total, so lower-priced houses fit easily.
Most portfolios here combine duplexes, campus-area houses and a few suburban homes. The table shows common pieces.
| Area | Typical rental | Tenants | Watch for |
|---|---|---|---|
| South and southwest Lubbock | Side-by-side duplexes, newer houses | Students, young professionals, families | HOA rules in some subdivisions; school district tax rates |
| Tech Terrace, Overton, Maxey Park | Older houses near campus | Students, faculty, staff | Occupancy limits on unrelated tenants; older systems |
| Heart of Lubbock, east of campus | Older small houses | Students, working households | Condition varies block to block |
| Wolfforth, Shallowater, Lubbock-Cooper area | Newer houses | Families | Higher tax rates in some districts; MUDs in a few subdivisions |
A blanket loan adds up rent from every property and compares it with one payment: principal and interest on the blanket loan, plus every property's taxes, insurance and HOA dues. The standard minimum is 1.0x across the group.
In Lubbock, taxes are often the second-largest cost after the loan payment, so the tax line limits leverage more than in lower-tax states. Running the numbers at a few LTVs before you apply tells you where the portfolio actually lands.
Lubbock's tax rates differ by school district and city, so a duplex in one district can carry a noticeably higher bill than an identical one a few miles away. Include each property's own bill in your numbers.
This example is illustrative and not a quote. An investor owns three duplexes in south and southwest Lubbock and houses near Overton, Maxey Park and in Wolfforth. Together they are worth about $1,335,000 and rent for $10,350 a month. Taxes are budgeted at about 2.2% of value, or $2,448 a month, and insurance at $1,140.
At 75% of value, the blanket loan would be $1,001,250, and the portfolio DSCR would be about 0.98x, below the minimum. At 65%, the loan is $867,750, estimated principal and interest is about $6,067, the total payment is about $9,655 and the portfolio DSCR is about 1.07x. Texas taxes are the reason the lower figure works better here.
| Property | Value | Monthly rent |
|---|---|---|
| Duplex, southwest Lubbock | $240,000 | $1,900 |
| Duplex, southwest Lubbock | $245,000 | $1,925 |
| Duplex, south Lubbock | $235,000 | $1,875 |
| House, Overton area | $195,000 | $1,500 |
| House, Maxey Park area | $215,000 | $1,600 |
| House, Wolfforth | $205,000 | $1,550 |
| Total | $1,335,000 | $10,350 |
Each property in a Lubbock portfolio is taxed by the county, the city, the school district and the hospital district, and some newer subdivisions add a municipal utility district. Investors do not get homestead exemptions or the homestead appraisal cap, so rental values can rise faster than homestead values.
Protesting appraisals with the Lubbock Central Appraisal District each year is standard practice for portfolio owners. A successful protest on several properties can move the portfolio ratio. Texas has no state transfer tax, which keeps the cost of adding properties lower than in many states.
Each property carries an allocated share of the blanket loan. To sell one, you pay a release price set in the loan documents, usually more than that share, and there may be a test that the remaining properties still meet a minimum DSCR. See /blanket-loan-release-clause.html.
Lubbock owners use releases to sell a campus-area house to a parent buying for a student, or to trade older duplexes for newer ones in southwest Lubbock.
Releases can also help with Texas taxes: selling a property with a high appraisal and low rent can lift the ratio of what remains.
Student leases near Tech often turn over in August, so time a refinance for when most units are signed. Lubbock has had limits on the number of unrelated adults in single-family zones; confirm current rules with the city before counting rent that assumes several roommates.
Hail and wind drive insurance costs across the South Plains, and many policies carry separate wind and hail deductibles. Lenders require coverage on every property. Some investors carry one policy across the portfolio.
If one property is much stronger than the rest, it may do better on its own. Compare at /blanket-loan-vs-individual-dscr-loans.html. If you also own rentals in Amarillo, Midland or another state, some programs combine them; see /multi-state-portfolio-loans.html.
Send a schedule of addresses, values, rents, tax bills and balances through the form below or call (877) 298-1001.
Many Lubbock investors grow by buying one or two duplexes a year with individual DSCR loans, then rolling five or more into a blanket once values have risen. The blanket can return equity for the next round of purchases and simplifies the payments.
Others start with a portfolio purchase from a retiring landlord near campus, use short-term money to close and then refinance into a blanket after turning units for the fall. Either path works, as long as the rent supports the payment at the full tax rate.
Keep good records as you go: leases, rent history, tax protests, insurance claims and improvements. When it is time to refinance, a complete file moves faster and supports stronger appraisals.
Five or more rentals, each with 1 to 8 units. Duplexes and houses can be mixed.
Often because of property taxes. Texas taxes are high and investors get no homestead exemption, so the DSCR limits the loan before the LTV does.
Yes. You pay the release price for that property, and the rest of the portfolio stays in place.
No. The loan qualifies on the portfolio's rent, with a 620 or higher credit score and reserves.
Many portfolio owners do each year. Lower appraised values reduce taxes and improve the portfolio ratio.
Yes. Properties anywhere in Texas can be combined, and some programs allow properties in other states.
Yes. Cash-out goes up to 75% LTV, though in Lubbock the ratio may limit it to less.
Yes, once they are leased. A blanket loan sizes on documented rent, so newly built units need tenants in place or market rent support from the appraiser.
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