DC landlords tend to build portfolios one rowhouse or condo at a time, often across several wards. A blanket loan can put five or more of them under one loan, but DC's tenant laws shape how you plan sales and releases.
In short: LendingStreet offers blanket portfolio loans that combine five or more DC rentals, each 1 to 8 units, into one loan qualified on the portfolio's combined cash flow, with one closing, one payment and release provisions when you sell a property. Loans start at $150,000 with no stated maximum, LLC borrowers are standard and no W-2s or tax returns are needed. Because DC rents are modest relative to values in many neighborhoods, portfolios often work best at moderate leverage.
A typical District portfolio mixes property types: a condo in Petworth or Columbia Heights, a rowhouse in Brookland or Trinidad, a two-unit rowhouse with an English basement apartment, and single-family homes east of the Anacostia River in Congress Heights, Deanwood or Hillcrest, where prices are lower and rents can be strong relative to value.
Many owners also hold rentals in Prince George's County, Montgomery County or Northern Virginia. Properties outside DC can be included on some programs, which lets a regional landlord consolidate.
Owners usually look at a blanket when several loans come due around the same time, when they want to pull equity from rowhouses bought years ago, or when juggling five servicers, five escrow accounts and five insurance renewals has become a job of its own.
Northwest neighborhoods like Capitol Hill, Logan Circle and Cleveland Park carry high values that rents often do not cover at high leverage. Wards 7 and 8 have lower prices, and many investors rely on them to lift a portfolio's ratio. Housing Choice Voucher leases are common in parts of the city, and documented voucher rent counts like any other lease.
A blanket loan adds up all rents and compares them with the combined payment, so a strong east-of-the-river house can carry a Northwest condo with high fees, as long as the total clears the program minimum.
Condo fees in DC buildings can be several hundred dollars a month or more, and they count fully in the payment. Each building's budget, insurance and rental policies get reviewed, so collect association documents early.
DC's Office of Tax and Revenue reassesses property every year. Occupied residential property is taxed at the residential rate, while property classified as vacant or blighted is taxed at far higher rates. Keep every property occupied or properly registered, since a reclassification would hit the portfolio's numbers.
This example is illustrative and not a quote. An owner holds five rentals worth $2,540,000 combined, renting for $14,900 a month. Taxes total $1,800 a month and insurance plus condo fees $1,320.
At 70% of combined value, the loan would be $1,778,000 with estimated principal and interest of about $11,829. The total payment is about $14,949 and the portfolio DSCR is about 1.00x, right at the line.
At 65% of value, the loan is $1,651,000, estimated principal and interest is about $10,984, and the total is about $14,104, for a DSCR of about 1.06x. That is the structure that clears the standard minimum with some room.
| Property | Value | Monthly rent | Allocated loan at 65% |
|---|---|---|---|
| Petworth condo | $450,000 | $2,600 | $292,500 |
| Brookland rowhouse | $720,000 | $3,700 | $468,000 |
| Congress Heights two-unit | $560,000 | $3,600 | $364,000 |
| Deanwood single-family | $430,000 | $2,700 | $279,500 |
| Fort Totten condo | $380,000 | $2,300 | $247,000 |
| Portfolio total | $2,540,000 | $14,900 | $1,651,000 |
Release provisions let you sell one rental and keep the loan on the others. You pay a release amount set in the loan documents, generally tied to the property's allocated balance plus any premium the program requires. In the example, selling the Deanwood house would mean paying down at least about $279,500.
In DC, timing a sale is not only up to you. The Tenant Opportunity to Purchase Act gives tenants of many rental properties the right to receive an offer and try to buy before a sale to a third party, with some exemptions for single-family homes. The notice and response periods can add weeks or months, so plan releases well ahead.
Every DC rental needs a rental housing business license and must meet the housing code. Many older buildings are covered by DC's rent stabilization program, with exemptions that depend on when the building was built and who owns it. Moving properties from personal names into an LLC can affect some exemptions, so talk with DC counsel before changing title for a loan.
Underwriting uses in-place leases or market rent within any limits that apply. In a long-held portfolio, in-place rents on stabilized units are often below market, and those actual rents are what drive the ratio.
Natural hazard risk in DC is lower than on the coasts, but older rowhouses bring their own issues: flat roofs, shared party walls, aging electrical and basement water intrusion. A few neighborhoods have had flash flooding during heavy storms. Every property in the blanket needs current coverage, so gather declarations pages and condo master policies before you apply.
A roof or waterproofing project on one rowhouse before you refinance can help both the appraisal and the insurance quote. Ask the inspector or appraiser to note recent work so it is reflected in the file.
A blanket simplifies payments and can carry portfolio pricing. Separate DSCR loans can be easier if you expect to sell several properties soon, since each sale stands alone. Given DC's TOPA timelines, some owners keep properties they may sell outside the blanket and put long-term holds in it.
On a refinance, DC's recordation tax can apply to the new deed of trust. Ask your settlement agent for an estimate early so cash to close is clear across all five or more properties.
Send a property schedule with addresses, values, rents, taxes, condo fees, insurance and loan balances. The financing team will run the portfolio DSCR at a few leverage levels and come back with options. Call (877) 298-1001 or use the form below. For more on the District, see our DC blanket loan page.
Five or more investment properties, each with 1 to 8 units.
Yes. Condos, rowhouses, single-family homes and small multi-unit buildings can share one blanket.
Yes. Documented Housing Choice Voucher rent counts like any other lease.
Tenants of many DC rentals have a right to an offer before a third-party sale, which can add time before you sell and release a property.
Values in many neighborhoods are high relative to rents, so moderate leverage keeps the portfolio DSCR above the minimum.
On some programs, yes. See our multi-state portfolio page.
Yes. Condo and HOA fees count fully in the portfolio payment.
No. Qualifying is based on rent, not personal income.
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