Building on the Coast means building for wind and water. The plans, elevation and roof system that get a permit in Gulfport are also what make the finished rental insurable.
In short: LendingStreet funds ground-up construction of 1-8 unit investor properties in Gulfport, Biloxi, D'Iberville and nearby: spec homes, build-to-rent houses, duplexes and small 5-8 unit buildings. Loans are sized on loan-to-cost with terms set per project, and money is released through a draw schedule after inspections. Approved plans, permits, a realistic budget and builder experience matter most.
Most new rental construction happens north of Interstate 10, where land is cheaper and many lots sit outside mapped flood zones: north Gulfport, Orange Grove, Lyman, Saucier and D'Iberville. Infill lots in older Gulfport and Biloxi neighborhoods suit duplexes and small multi-unit buildings, while closer to the beach, elevation requirements and insurance raise the cost of every square foot.
Build-to-rent demand comes from military households, healthcare and port workers, and families priced out of older housing with high insurance bills. A new, code-built home with a modern roof often insures better than the older stock it competes with.
Spec builders sell to the same buyers: first-time buyers, military families who want to own near the base and retirees moving to the Coast. Both strategies work best with simple, efficient floor plans, durable exterior materials and a roof built for wind, since those features help on both the sale price and the insurance quote.
Coast jurisdictions enforce modern building codes with design wind speeds well above inland Mississippi, which shows up in roof decking, connectors and windows. In flood zones, the lowest floor has to sit at or above the required elevation, which can mean piers or pilings instead of a slab.
Many investors also build roofs to the IBHS FORTIFIED standard, since some insurers credit it. Confirm requirements with the Gulfport, Biloxi or Harrison County building department before you price the job.
This example is illustrative and not a quote. An investor owns a lot worth $45,000 and plans a slab-on-grade duplex outside a mapped flood zone. Hard costs are $330,000 and soft costs, including plans, engineering, permits and builder's risk, are $25,000, for a total project cost of $400,000. For illustration, the loan is sized at 80% of cost, or $320,000, with the investor's lot value counting toward their share.
When the duplex is finished, both units lease at $1,550, or $3,100 a month, and it appraises at $430,000. A DSCR refinance at 75% LTV is $322,500, which pays off the construction loan. Estimated principal and interest is about $2,255, taxes about $480 and insurance about $300, for a payment of about $3,035 and a DSCR of about 1.02x.
Funds are released in stages as an inspector confirms the work. Here is how the hard costs might be split; actual stages are set per project.
| Stage | Share of hard costs | Draw amount |
|---|---|---|
| Foundation, piers and slab | 15% | $49,500 |
| Framing and dry-in, wind-rated roof | 30% | $99,000 |
| Mechanical, electrical, plumbing | 20% | $66,000 |
| Insulation, drywall, interior | 20% | $66,000 |
| Finishes and final inspection | 15% | $49,500 |
A duplex on the Coast often takes six to ten months from permit to certificate of occupancy, depending on weather and trades. Try to get the house dried in before the peak of hurricane season in August and September, and keep the site clean so loose materials do not become debris. Rain delays in summer are normal; build them into the schedule. Afternoon thunderstorms can stop roofing and concrete work for days at a time, and inspections can back up after a storm passes through the area.
We need to see a buildable plan. Projects without plans or permits usually do not qualify, and neither do borrowers with no build history who are not working with an experienced general contractor. Lots with unclear access, unresolved wetlands questions or flood-zone surprises also slow things down, so share the survey and elevation information early.
We also look at the exit. A build-to-rent duplex should show market rents that support a DSCR refinance at a reasonable loan amount once insurance and taxes at the 15% assessment ratio are included. A spec home should have recent sales nearby that support your target price. Projects with a clear path out move through review faster than projects where the plan is still forming.
Spec homes are sold to owner-occupant buyers. Build-to-rent projects refinance into a DSCR loan once leased, qualified on the rent. For small 5-8 unit buildings, the refinance goes through a 5-8 unit DSCR program, where leverage varies by program; see our Gulfport 5-8 unit page.
On the Coast, soft costs often run higher than first-time builders expect. Engineering for wind loads, an elevation certificate, a survey, permit and impact fees, utility taps and builder's risk insurance all come before the first draw. Builder's risk on the Coast is priced for wind, so get the quote before you finalize the budget.
Interest is charged on what has been drawn, so carrying cost grows as the project moves along. Keep a contingency for weather delays and price changes on lumber, roofing and windows, and keep enough cash for the gap between finishing construction and getting both units leased.
If you plan to build more than one house, start with one and use the finished rental's numbers to support the next project. A completed build gives the next lender a track record to review.
Send the lot details, plans, budget and builder information through the form below or call (877) 298-1001. Our investor loans are business-purpose loans on non-owner-occupied property. For statewide construction lending, see our Mississippi construction loan page.
On loan-to-cost, with terms set per project. Land you already own can count toward your share of the cost.
Yes. Approved plans and permits, or a clear path to them, are generally required before funds are released.
Yes, if the design meets the required elevation and you budget for flood insurance. Elevated construction costs more, which affects the numbers.
An inspector confirms each stage of work, then funds for that stage are released. Our draw schedule calculator helps plan the stages.
Yes, up to 8 units. Buildings of 9 or more units fall under commercial lending.
Sell it, or refinance into a DSCR loan qualified on the rent once it is leased.
Experience matters. Without a build track record, you generally need an experienced general contractor on the project.
No. These are business-purpose loans for investment property only.
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