St. Louis is one of the few large metros where an investor can own ten or twenty brick single-families and two-family flats without a coastal-sized budget. That also means many St. Louis portfolios are made of small loans that are hard to manage one by one.
In short: LendingStreet offers blanket portfolio loans that combine five or more St. Louis-area investment properties, each with 1 to 8 units, into one loan with one closing and one payment. The loan qualifies on the portfolio's combined rent, with no W-2s or tax returns, and release provisions let you sell individual properties. Portfolio pricing and LLC borrowers are standard, and properties in both the city and the county can be included.
A south city brick bungalow can sell for well under $200,000. At typical leverage, the loan on a single house can fall below the $150,000 minimum for an individual DSCR loan, which leaves many St. Louis landlords holding properties free and clear or on short local bank notes.
Combining eight or ten of those houses produces a balance that clears the minimum easily and lets the stronger rent of some properties support the others. It also replaces a stack of renewals, escrow accounts and insurance policies with one.
Investors who bought heavily in south city after 2010 often financed with five-year local bank notes, and many of those notes have come due in clusters. A blanket loan with a 30-year term on some programs replaces that refinance treadmill with one long-term payment.
Most local portfolios are concentrated in south city and the inner-ring county. Bevo Mill, Southampton, Princeton Heights, Holly Hills, Boulevard Heights and St. Louis Hills have rows of brick bungalows and two-family flats that rent steadily. Tower Grove East, Fox Park and Benton Park add flats and four-families. In the county, Affton, Lemay, Mehlville and Overland are common.
North county suburbs such as Florissant and Ferguson offer lower prices with higher turnover. Some investors also hold St. Charles County homes in St. Peters and O'Fallon, where newer construction means lower maintenance.
| Area | Typical property | Draw | Watch for |
|---|---|---|---|
| Bevo Mill / Southampton | Brick bungalows, two-family flats | Steady long-term tenants | Older systems |
| St. Louis Hills / Princeton Heights | Brick single-families | Stable, lower turnover | Higher prices |
| Fox Park / Benton Park | Flats and four-families | Close to downtown | Renovation quality |
| Affton / Lemay / Mehlville | Ranches, bungalows | County schools, simple houses | Municipal inspections |
| St. Peters / O'Fallon | Newer single-families | Low maintenance | Lower rent per dollar |
Many St. Louis County municipalities require an occupancy inspection or permit when a property sells or a new tenant moves in, and the City of St. Louis has its own permit and inspection requirements. A portfolio spread across Affton, University City and south city might answer to three different inspection systems.
Keep a schedule showing each property's municipality, its current permit status and the date of its last inspection. Unresolved violations can hold up a property's inclusion in the loan.
The appraiser will also visit each property. Vacant units, boarded windows or obvious deferred maintenance can lower the value assigned to a property, which lowers the combined loan amount.
This example is illustrative and not a quote. An investor owns eight rentals worth a combined $1,240,000: five brick bungalows in Bevo Mill and Southampton, two two-family flats in Holly Hills and a ranch in Affton. Total rent is $11,800 a month.
A blanket loan at 70% of combined value is $868,000. Estimated principal and interest on a 30-year term is about $5,921. Taxes across all eight parcels are about $1,500 a month and insurance about $780, for a total payment of about $8,201. Portfolio DSCR is about 1.44x.
| Item | Portfolio total |
|---|---|
| Combined value, eight properties | $1,240,000 |
| Blanket loan at 70% | $868,000 |
| Estimated principal and interest | $5,921 |
| Property taxes | $1,500 |
| Insurance | $780 |
| Total monthly payment | $8,201 |
| Monthly rent | $11,800 |
| Portfolio DSCR | About 1.44x |
With a blanket loan, each property carries an allocated share of the balance. When you sell one, you pay a release amount, usually that allocation plus a premium set by the program, and the lien comes off that property alone.
In the example, a bungalow worth $140,000 carries an allocated loan of about $98,000. If the program set the release at 110% of allocation, the payoff would be about $107,800, leaving roughly $760,200 on the other seven properties. Those seven still need to clear the program's DSCR test, so selling your strongest rent producer first can tighten the ratio.
Missouri assesses residential property at a 19% assessment ratio and reassesses every odd-numbered year. Tax levies differ between the city, county municipalities and school districts, so a portfolio's tax total is a sum of very different bills. Use each parcel's current bill.
Insurance on older brick housing depends on roof type, wiring and plumbing. Portfolio policies can simplify renewals. Some neighborhoods near the Mississippi and the River des Peres have flood-zone parcels; check each address on the FEMA map.
Investors who bought south city homes years ago at very low prices often own them free and clear. A blanket cash-out can go up to 75% of combined value on some programs, with lower leverage on larger balances, if the portfolio still clears the ratio at the new payment.
That equity commonly funds more acquisitions, renovation of vacant units, or a buyout of a partner. Missouri's lack of a transfer tax helps keep the cost of a refinance down. Seasoning requirements vary by program.
A tidy schedule shortens the review.
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 test the portfolio at several loan amounts. The Missouri blanket page covers Kansas City, Springfield and other markets.
Yes. Properties in the City of St. Louis, St. Louis County and St. Charles County can be combined, as long as each is a 1-8 unit investment property.
Not for a blanket loan. The minimum applies to the total loan, so combining several lower-priced homes is a common way to clear it.
Total rent from all properties is compared with the total payment, including principal and interest, taxes and insurance. The portfolio typically needs to clear 1.0x.
You pay the release amount for that property and the lien is removed from it, while the loan stays in place on the rest. Release terms vary by program.
They can. A property with unresolved violations or no valid occupancy permit may need to be cleared before it can be included.
Some programs allow properties in more than one state. Ask about multi-state portfolios.
No. A blanket DSCR loan qualifies on property rent with a 620 minimum credit score.
No. Every property must be a non-owner-occupied rental.
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