Texas has some of the largest single-family rental portfolios in the country, spread across Dallas-Fort Worth, Houston, San Antonio, Austin and smaller metros. Investors with five or more rentals can consolidate them into one blanket loan.
In short: LendingStreet can put five or more Texas rentals, each with 1 to 8 units, under one blanket DSCR loan that qualifies on total portfolio rent, with release provisions when you sell. Texas has no state transfer tax, but property taxes are high, and newer subdivisions often carry extra MUD or PID assessments that count in each property's payment.
A blanket loan is a single DSCR mortgage secured by a group of rentals, at least five properties with 1 to 8 units each. You close once, make one payment and deal with one servicer, and the pricing reflects the portfolio as a whole.
Qualification runs on the debt service coverage ratio for the entire group: combined rent divided by the combined monthly payment, which includes taxes, insurance and any association dues. Standard programs look for 1.0x or better, and sub-1.0 programs exist for some files. LLC borrowers are standard and loans start at $150,000. Max LTV varies by program.
Dallas-Fort Worth investors buy across a huge area, from older homes in Oak Cliff and east Fort Worth to newer suburbs such as Forney, Little Elm, Burleson and Crowley. Houston portfolios spread from established neighborhoods inside the Beltway to Katy, Cypress, Spring and Pearland. San Antonio adds lower prices and military renters near Joint Base San Antonio, and Austin has the highest prices of the big four.
Smaller markets such as El Paso, near Fort Bliss, Killeen next to Fort Hood, the Rio Grande Valley, Lubbock and Waco offer lower entry prices. Many Texas investors hold properties in more than one metro, and a blanket loan handles that easily within one state.
This example is illustrative and not a quote. An investor owns five single-family rentals in the Dallas-Fort Worth area and two in San Antonio. Together the seven properties are worth about $1,935,000, rent for $14,100 a month and carry about $4,170 a month in taxes and insurance.
At 60% of combined value, the blanket loan is about $1,161,000. Estimated principal and interest on a 30-year schedule is about $8,118 a month, so the total monthly obligation is about $12,288 and the portfolio DSCR is about 1.15x, above the 1.0x standard minimum. On its own, the Forney SFR (MUD) would carry an allocated balance of about $192,000 and a ratio of about 1.09x; inside the blanket, the stronger properties help carry it. The taxes-and-insurance column is high relative to value, which is normal in Texas, and the Forney home includes a MUD tax on top of its county and school taxes.
| Property | Value | Monthly rent | Taxes + insurance / mo |
|---|---|---|---|
| Burleson SFR | $300,000 | $2,150 | $640 |
| Crowley SFR | $290,000 | $2,100 | $620 |
| Arlington SFR | $270,000 | $2,000 | $580 |
| Mesquite SFR | $260,000 | $1,950 | $560 |
| Forney SFR (MUD) | $320,000 | $2,250 | $720 |
| San Antonio SFR, northwest | $255,000 | $1,850 | $540 |
| San Antonio SFR near JBSA | $240,000 | $1,800 | $510 |
| Portfolio total | $1,935,000 | $14,100 | $4,170 |
Texas does not charge a state transfer tax or mortgage tax, which keeps closing costs on a multi-property loan lower than in many states. Property taxes make up the difference: county appraisal districts reappraise every year, and the homestead cap does not apply to rentals, so bills can rise faster. Many investors protest valuations each year. Use current bills.
Newer subdivisions in the DFW, Houston and Austin suburbs are often inside a municipal utility district (MUD) or public improvement district (PID), which adds its own tax or assessment on top of county, city and school taxes. Insurance varies by region: hail in North Texas, windstorm along the Gulf Coast, where some properties are insured through the state windstorm association, and flood zones in Houston.
Blanket loans include release provisions so you can sell or refinance one property without paying off the whole loan. Each property carries an allocated share of the balance, and the release price, set in your loan documents, is usually more than that share so the remaining loan stays well secured.
Before you sell, run the numbers on the properties that stay. Removing a strong performer can pull the remaining portfolio's ratio down, and release terms are written to protect the coverage on what is left. Our guide to the blanket loan release clause walks through how this is typically structured.
Texas Property Code Chapter 92 governs residential leases, and state law preempts local rent control. Texas evictions generally move quickly compared with many states. Leases and rent rolls are the core of a blanket loan file.
Short-term rentals are regulated city by city. Austin requires licenses and limits non-owner-occupied rentals in residential areas, and Dallas, Houston, San Antonio and Fort Worth each have their own registration and zoning rules, some still evolving through litigation. Check locally before counting nightly income.
One blanket loan makes the most sense for a stable group of rentals you intend to keep, especially when a few of them would struggle to qualify alone. The combined coverage test, single closing and one servicer are the main advantages.
Individual DSCR loans can be better for properties you expect to sell soon, a property that needs its own cash-out, or a portfolio so spread out that one appraisal process would be slow. A split approach is common, and nothing stops you from keeping both kinds of loans.
Have these ready when you request a quote. To price a Texas portfolio, use the form below or call (877) 298-1001.
Yes. LendingStreet finances blanket portfolio loans on non-owner-occupied investment property in Texas, from $150,000 with no stated maximum. Our investor loans are business-purpose loans on non-owner-occupied property.
No. Texas has no state transfer tax or mortgage tax. Property taxes are high, though, and weigh on the combined ratio.
Municipal utility districts and public improvement districts add a tax or assessment in many newer subdivisions. They count in each property's payment.
Yes, five or more properties. Each can be a single-family home, condo, townhome or a building with up to 8 units.
Often, yes. The coverage test is done on the whole portfolio, so stronger properties can offset a weaker one as long as the combined ratio clears the minimum.
The minimum is 620. No W-2s, pay stubs or tax returns are needed because the loan qualifies on rent.
Some programs allow properties in more than one state under one blanket loan. Each property is still appraised and recorded in its own county.
Only if licensed. Austin limits non-owner-occupied short-term rentals in residential areas, so most portfolios use long-term leases.
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