Madison investors tend to build portfolios slowly: a duplex on the Near East Side, a single-family in Sun Prairie, a student house near campus, another duplex in Stoughton. By the fifth or sixth loan, the paperwork and separate payments start to feel like a second job.
In short: LendingStreet's blanket portfolio loans let Madison-area investors put 5 or more rentals, each with 1 to 8 units, under one loan with one closing and one monthly payment. The loan qualifies on the portfolio's combined cash flow rather than each property alone, with portfolio pricing and release provisions so you can sell one property without refinancing the rest. Loans start at $150,000 with no W-2s or tax returns.
Madison's rental base is a mix of older two-flats close to downtown and newer single-family homes in the suburbs. Investors commonly hold up-and-down duplexes in Williamson-Marquette, Tenney-Lapham and Schenk-Atwood, small rentals on the Northside and near Hawthorne, and student houses near the UW-Madison campus, where leases traditionally turn over in August.
In the suburbs, Sun Prairie, Fitchburg, Monona, Middleton, Verona, McFarland and Stoughton add single-family homes that rent to families and to employees of state government, UW Health and Epic. A blanket loan can combine both kinds of property.
Instead of asking whether each house clears 1.0x on its own, a blanket loan looks at total rent against the total payment. A Monona single-family that runs a little thin can sit alongside a Stoughton duplex with strong cash flow, as long as the portfolio as a whole qualifies.
In Madison this matters because property taxes vary widely between the city and the suburbs, and older city duplexes often carry higher taxes relative to rent than newer suburban homes.
Lenders still look at each property: its condition, its leases and whether the rent is supported by the market. A blanket does not hide a vacant or rundown house, but it does let you qualify on the total picture rather than the weakest link.
This example is illustrative and not a quote. An investor refinances six rentals worth $2,445,000 in total, with combined rent of $16,150 a month. Combined property taxes are about $4,050 a month and insurance about $780.
At 70% of combined value, the blanket loan is $1,711,500. Estimated principal and interest is about $11,967, and the total monthly payment is about $16,797. Portfolio DSCR is about 0.96x.
Look at the Near East Side duplex on its own: its taxes are a large share of its rent, and at 70% LTV it would run close to break-even as a single loan. Inside the blanket, the Stoughton and Northside duplexes carry it. That is the main reason Madison investors with a mix of city and suburban rentals look at a blanket.
| Property | Value | Monthly rent | Monthly taxes |
|---|---|---|---|
| Near East Side up-down duplex | $540,000 | $3,350 | $880 |
| Northside duplex | $410,000 | $2,900 | $690 |
| Sun Prairie single-family | $385,000 | $2,450 | $640 |
| Fitchburg single-family | $400,000 | $2,500 | $660 |
| Monona single-family | $360,000 | $2,300 | $620 |
| Stoughton duplex | $350,000 | $2,650 | $560 |
| Total | $2,445,000 | $16,150 | $4,050 |
Release provisions let you sell one property out of the blanket. The loan documents set how much of the sale proceeds go toward paying down the loan, and the remaining properties have to keep supporting the reduced balance. Release terms vary by program, so read them before you sign. Because the release amount is often more than the property's share of the original loan, selling your strongest earner can tighten the DSCR on what is left.
Madison investors often use releases to sell a student house that has appreciated or to trade out an older property with rising repair costs.
The City of Madison assessor reviews values regularly, and suburban municipalities in Dane County run their own assessments. When values climb, tax bills can follow, which lowers portfolio cash flow. Use the current bill for each property and confirm whether a revaluation is coming. A portfolio that clears comfortably today can tighten if several suburban assessments rise in the same year, so leave some room above 1.0x.
Wisconsin also charges a real estate transfer fee when property changes hands, which is part of the cost of selling one property out of the portfolio.
Separate loans give each property its own terms and make selling one simple. A blanket gives you one payment, one renewal schedule and portfolio pricing, and it lets strong properties carry weaker ones. If you plan to sell several properties in the next few years, compare the release terms with the cost of separate loans.
Another factor is timing. Madison investors who bought single properties years apart often have loans maturing or adjusting at different times. Rolling them into one blanket puts everything on one schedule, which makes planning easier but also means one large refinance decision later instead of several small ones.
Campus-area houses are a common piece of Madison portfolios, and they behave differently from family rentals. Leases often run August to August, rent is sometimes set by the bedroom, and units can sit empty for part of the summer if a lease falls through. Turnover costs for paint, cleaning and repairs are higher.
In a blanket, a student house is fine as long as it is a 1 to 8 unit property with leases and market rent support. Bring the signed leases for the coming school year if you have them, since they show the income the lender can count.
Each property must be a 1 to 8 unit investment property. The minimum credit score is 620, LLC borrowers are standard and properties in more than one state can be combined on some programs.
Send your property schedule through the form below or call (877) 298-1001. We will run the portfolio DSCR and show how the numbers compare with keeping separate loans.
Five or more investment properties, each with 1 to 8 units.
Yes. City duplexes and suburban homes in Sun Prairie, Fitchburg, Middleton or Verona can go under one loan.
Yes, if they are 1 to 8 unit investment properties with leases. Lenders look at actual leases and market rent.
Total monthly rent divided by the total monthly payment for the whole portfolio, including principal, interest, taxes and insurance.
Yes, through the release provisions. The documents set how much of the sale proceeds pay down the loan.
On some programs, yes. Multi-state portfolios are possible.
No. Blanket loans qualify on the properties' cash flow.
The minimum is 620, and LLC borrowers are standard.
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