Tennessee portfolios range from affordable single-family rentals in Memphis to higher-priced homes around Nashville and growing markets in Knoxville, Chattanooga and Clarksville. Investors with five or more can combine them in one blanket loan.
In short: LendingStreet offers Tennessee blanket loans that combine five or more investment properties of 1 to 8 units into one note, one closing and one payment, sized on combined rent rather than tax returns. Tennessee charges a mortgage indebtedness tax on new loans and a recordation tax on transfers, and taxes residential property on a 25% assessment ratio.
With a blanket loan, every property in the package is pledged to a single note. That means one underwriting file, one appraisal process run across all the addresses, one closing and one monthly payment, with pricing set at the portfolio level rather than door by door.
The test is portfolio cash flow. Add up the rent from every property and divide by the combined payment, including principal, interest, taxes, insurance and HOA dues. Standard programs want at least 1.0x. Each property can have 1 to 8 units, the minimum credit score is 620 and no W-2s or tax returns are needed. Max LTV depends on the program and the size of the portfolio.
Memphis has one of the largest single-family rental markets in the South, with older brick and frame homes in areas such as Frayser, Whitehaven, Raleigh and Cordova, often at prices that produce strong rent relative to value. Many Memphis investors hold well over five properties, which is where a blanket loan saves the most paperwork.
Nashville and its suburbs, such as Antioch, Madison, Murfreesboro and Smyrna, have higher prices and newer stock. Knoxville, with the University of Tennessee, and Chattanooga sit in between. Clarksville, next to Fort Campbell, has steady military demand, and Sevier County around Gatlinburg and Pigeon Forge is a major cabin rental market.
This example is illustrative and not a quote. An investor owns five Memphis-area single-family rentals and one in Clarksville. Together the six properties are worth about $1,125,000, rent for $9,075 a month and carry about $2,140 a month in taxes and insurance.
At 70% of combined value, the blanket loan is about $788,000. Estimated principal and interest on a 30-year schedule is about $5,510 a month, so the total monthly obligation is about $7,650 and the portfolio DSCR is about 1.19x, above the 1.0x standard minimum. On its own, the Clarksville SFR would carry an allocated balance of about $182,116 and a ratio of about 1.11x; inside the blanket, the stronger properties help carry it. Tennessee's mortgage indebtedness tax would apply to the new loan amount, so ask the title company for that figure when you request a quote.
| Property | Value | Monthly rent | Taxes + insurance / mo |
|---|---|---|---|
| Memphis SFR, Raleigh | $155,000 | $1,350 | $330 |
| Memphis SFR, Whitehaven | $140,000 | $1,275 | $310 |
| Memphis SFR, Cordova | $210,000 | $1,650 | $390 |
| Memphis SFR, Frayser | $120,000 | $1,150 | $290 |
| Bartlett SFR | $240,000 | $1,800 | $420 |
| Clarksville SFR | $260,000 | $1,850 | $400 |
| Portfolio total | $1,125,000 | $9,075 | $2,140 |
Tennessee charges a mortgage indebtedness tax on new mortgages, figured on the loan amount, so it applies to a blanket loan as well as to a purchase. It also charges a recordation tax on property transfers, which applies to purchases and to deed transfers into an LLC. Ask your title company to estimate both before closing.
Residential property is taxed on a 25% assessment ratio, and counties reappraise on cycles of four to six years, so a reappraisal year can raise a bill. Memphis properties may carry both Shelby County and City of Memphis taxes. Insurance is generally moderate, though tornado and wind risk across West and Middle Tennessee and older roofs in Memphis can raise premiums.
A release provision lets one property leave the blanket when it sells or gets its own refinance. You pay down the loan by that property's release price, which your loan documents set and which is usually higher than its allocated share, and the lender releases its lien on that address.
The properties that remain still have to support the loan, so think about which ones you may sell before you assemble the package. Keeping likely sales out of the blanket, or putting them on their own DSCR loans, can keep the remaining portfolio simpler.
Tennessee's Uniform Residential Landlord and Tenant Act applies in counties above a population threshold, which covers the large metros, and state law preempts local rent control. Leases and rent rolls are what underwriting relies on.
Nashville restricts non-owner-occupied short-term rentals in most residential-only zones and requires permits everywhere. Sevier County and the Smoky Mountain cabin areas allow them more broadly with local licensing. Check the city or county before counting nightly income on any property.
A blanket loan fits best when the properties are stabilized and you plan to hold most of them for years. It cuts paperwork, gives you one payment to track and lets strong properties carry weaker ones in the coverage test.
Separate DSCR loans keep each property independent, which can make selling simpler and lets each property get terms based on its own numbers. Many investors use both: a blanket for the long-term core and individual loans for properties they expect to sell. For a deeper comparison, see blanket loan vs individual DSCR loans.
Pulling these together before you apply saves time across multiple appraisals. Send your property schedule through the form below, or call (877) 298-1001, to get a quote.
Yes. LendingStreet finances blanket portfolio loans on non-owner-occupied investment property in Tennessee, from $150,000 with no stated maximum. Our investor loans are business-purpose loans on non-owner-occupied property.
Yes. The mortgage indebtedness tax applies to new loans, including blanket loans. Ask your title company for the estimate.
Only if permitted. Nashville restricts non-owner-occupied short-term rentals in most residential-only zones.
At least five investment properties, each with 1 to 8 units. There is no stated maximum on the number of properties or the loan amount.
Standard programs look for a combined ratio of 1.0x, meaning total rent covers the total payment. Some programs allow lower ratios with adjusted terms.
No. Blanket loans qualify on the portfolio's rent. You need a 620 or higher credit score, reserves and entity documents if the properties are in an LLC.
On some programs, yes. Multi-state portfolios can go under one loan, though each property is appraised and recorded where it sits.
Possibly. Some programs can use short-term rental income, and Sevier County allows cabin rentals with local licensing.
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