Sioux Falls has grown fast for two decades, and many local landlords grew with it, adding a house or a twin home every year or two. By the time they own six or eight, they are juggling as many loans with different terms.
In short: LendingStreet's blanket portfolio loans combine 5 or more Sioux Falls-area investment properties, each with 1 to 8 units, into one loan with one closing and one monthly payment, qualified on the combined rent of the portfolio with no W-2s or tax returns. Release provisions let you sell individual properties and pay down only their share. Properties across Minnehaha and Lincoln counties, including Brandon, Harrisburg and Tea, can sit under the same loan.
Most local portfolios mix older central-city homes with newer suburban housing. Central neighborhoods such as Pettigrew Heights, Whittier, the Cathedral area and All Saints have early-1900s houses and some converted duplexes. Post-war ranches and split-levels fill the northwest and east sides. Newer construction on the south and west edges and in Harrisburg, Tea, Brandon and Hartford adds twin homes and townhomes.
Twin homes are common in Sioux Falls: two attached homes, each on its own lot. Each half is a separate property for a blanket loan, so a few twin home buildings can reach the five-property minimum quickly.
One loan means one payment, one escrow account and one maturity date instead of a stack of local bank notes, many of which in this region have shorter terms or balloons. It also means the portfolio, not each house, has to meet the DSCR test, which helps when one property is between tenants or rents below market.
For investors who started with low-priced central homes, grouping also solves the minimum loan size. Our DSCR loans start at $150,000, and several properties together clear it easily.
This example is illustrative and not a quote. An investor owns six rentals in Pettigrew Heights, Whittier, northwest and east Sioux Falls, Brandon and Harrisburg, valued at $1,670,000 with combined rent of $10,950 a month. Taxes total about $2,040 a month and insurance about $870.
At 75% LTV the blanket loan is $1,252,500. Estimated principal and interest on a 30-year loan is about $8,758, for a total payment near $11,668. The portfolio DSCR is about 0.94x.
| Property | Value | Monthly rent | Monthly taxes |
|---|---|---|---|
| Pettigrew Heights single-family | $235,000 | $1,600 | $290 |
| Whittier duplex | $265,000 | $2,100 | $330 |
| Northwest ranch | $280,000 | $1,750 | $345 |
| Eastside split-level | $295,000 | $1,850 | $360 |
| Brandon single-family | $320,000 | $1,900 | $380 |
| Harrisburg twin home half | $275,000 | $1,750 | $335 |
| Total | $1,670,000 | $10,950 | $2,040 |
South Dakota has no state income tax, and local governments lean on property and sales taxes. Owner-occupied homes are taxed at a lower level than other residential property, so investor-owned rentals carry higher bills than similar homes next door. When you buy from an owner-occupant, the next bill usually rises.
Minnehaha and Lincoln counties reassess values regularly, and values have risen with the market. The example above uses non-owner-occupied tax figures, which is how a lender will look at it. Use actual bills for properties you already own.
The state's real estate transfer fee is modest compared with many states, which makes buying and selling individual properties less costly.
Each property gets an allocated share of the loan. When you sell one, the release clause sets the payoff to free it, often more than its allocated share, and the remaining properties must still meet the program's DSCR. Twin home halves and suburban homes tend to sell quickly to owner-occupant buyers in Sioux Falls, so investors often use releases to trim the portfolio over time.
Read the release terms before you close if you expect to sell within a few years.
Hail is a fact of life in Sioux Falls. Many policies carry separate wind and hail deductibles, and roofs on older central homes can drive premiums up. A blanket refinance is a good time to review coverage on every property, confirm roof ages and make sure the lender is named correctly.
Older central homes may also need updates to electrical panels, sewer lines or foundations. Appraisers will note condition, and serious issues can affect value.
Sioux Falls values have climbed, and many long-time landlords hold real equity. A blanket cash-out refinance can pull some of it for the next purchase, up to 75% LTV depending on the program, as long as the portfolio still meets the DSCR at the new payment. Cash-out seasoning rules vary by program.
Some investors use the cash to buy the next fourplex or a set of twin homes, and then add those properties to a future blanket refinance once the portfolio grows. Others use it to replace roofs and windows across the portfolio, which can lower insurance costs and support rents. Either way, run the portfolio at a few loan amounts before you decide how much to take.
Separate DSCR loans let each property stand alone, which can make frequent sales simpler. A blanket loan is easier to manage and lets stronger properties support weaker ones. Our comparison of blanket and individual DSCR loans covers the tradeoffs, and our South Dakota blanket portfolio page covers Rapid City and other markets. Some programs can also include rentals in Iowa, Minnesota or Nebraska.
Our investor loans are business-purpose loans on non-owner-occupied property. Use the form below or call (877) 298-1001 with the property details, current rents and what you want to accomplish, and we will size the loan against the cash flow and walk you through the options.
Yes. Each half of a twin home on its own lot is a separate property and counts toward the five-property minimum.
Yes. Properties anywhere in the Sioux Falls metro, in Minnehaha or Lincoln County, can sit under one loan.
South Dakota taxes owner-occupied homes at a lower level than other residential property. Rentals do not get that classification.
The portfolio DSCR uses combined rent, so a vacancy can be offset by stronger properties as long as the total qualifies.
Yes. The release clause sets the payoff for that property, and the remaining pool must still meet the DSCR.
No. The loan qualifies on rental income. The minimum credit score is 620 and LLC borrowers are standard.
On some programs, yes. Multi-state blanket loans can include rentals in more than one state.
Yes. Consolidating several shorter local loans into one long-term blanket loan is one of the most common reasons Sioux Falls landlords use this program.
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