Spokane was one of the first cities in Washington to open its single-family neighborhoods to duplexes, triplexes and fourplexes, and state middle-housing law has since pushed in the same direction. For investors, that turns many ordinary residential lots into potential small multi-unit rental sites, provided the project can be built inside Spokane's short construction season.
In short: LendingStreet finances ground-up construction in the Spokane area for 1-8 unit investor projects: infill duplexes to fourplexes, spec homes, build-to-rent houses and small 5-8 unit buildings. Loans are sized on loan-to-cost with terms set per project, and funds are released through a draw schedule after inspections. Plans, permits, the budget and builder experience drive the approval.
In 2022 Spokane adopted rules, known as Building Opportunity and Choices for All, that allowed duplexes, triplexes, fourplexes and townhouses in residential zones that had been limited mostly to single-family homes. Washington's middle housing law, passed in 2023, requires cities of Spokane's size to allow multiple units per residential lot, and the city has updated its code over time.
The exact number of units, setbacks, height limits and parking rules depend on the lot, the zone and nearby transit. Confirm what your lot allows with the city's Development Services Center before you buy land or commission plans.
Spokane Valley, Liberty Lake and Spokane County each have their own zoning codes, so a project that works on a city lot may not work the same way a few miles east. Check the jurisdiction first.
We finance residential projects from 1 to 8 units. Larger apartment projects are commercial loans.
| Project | Where it fits | Usual exit |
|---|---|---|
| Infill fourplex or triplex | Residential lots north of the river and near downtown | DSCR refinance on combined rent |
| Spec single-family home | Spokane Valley, Liberty Lake, north Spokane, South Hill infill | Sale to owner-occupant |
| Build-to-rent homes or duplexes | Airway Heights, Cheney, Spokane Valley | DSCR or blanket portfolio loan |
| Small 5-8 unit building | Lots zoned for higher-density residential | DSCR refinance |
This example is illustrative and not a quote. An investor buys a residential lot north of the river for $95,000 and plans a two-story fourplex with four two-bedroom units. Hard costs are budgeted at $700,000 and soft costs (design, permits, utility connections, impact or connection fees, builder's risk insurance and interest reserve) at $85,000, for a total cost of $880,000.
Assuming the project is sized at 80% of total cost, the loan is $704,000 and the investor contributes $176,000. Funds are drawn as each stage passes inspection, following a schedule that starts in late spring to stay ahead of winter.
After completion, the four units rent for about $1,650 each, $6,600 a month. If the building appraises at $1,150,000, a rate-and-term DSCR refinance of $714,000 pays off the construction loan at about 62% LTV. With estimated principal and interest of about $4,871, $960 in taxes and $260 in insurance, the payment is about $6,091 and the DSCR is about 1.08x.
| Stage | Target season | Share of hard costs | Draw amount |
|---|---|---|---|
| Site work and foundation | Late spring | 15% | $105,000 |
| Framing, roof, windows | Summer | 28% | $196,000 |
| Rough-ins and inspections | Late summer | 17% | $119,000 |
| Insulation, drywall, finishes | Fall | 28% | $196,000 |
| Final and occupancy | Late fall | 12% | $84,000 |
Frozen ground, snow and short winter days make foundation and exterior work difficult from roughly late fall through early spring. Projects that break ground in spring and dry in before the first hard freeze tend to finish on schedule; projects that start late can spend months waiting, paying interest on drawn funds.
Snow loads also affect roof design, and wildfire smoke in late summer can occasionally slow outdoor work. Build schedule slack into your budget and your loan term.
Approval depends on the project and the team.
Projects without plans or permits, land with no clear path to permits, and borrowers with no build track record who are not working with an experienced general contractor usually do not qualify. We do not finance a home you will live in; our investor loans are business-purpose loans on non-owner-occupied property.
Washington enacted a statewide limit on annual rent increases for many residential rentals in 2025, with exemptions that include newer buildings, along with longer notice requirements. Read the current rules before you build a rent-growth plan, and remember that a DSCR loan is sized on today's rent, not projected increases.
For build-to-rent investors, set initial rents at market based on comparable new units, since the DSCR refinance uses the rent in place. New units typically command a premium over older apartments in the same neighborhood. If you build several projects over time, a blanket portfolio loan can later combine them under one payment once each building is leased.
Infill lots in older Spokane neighborhoods can come with surprises: old foundations or debris from a prior house, basalt rock close to the surface in some areas that makes excavation expensive, and alley access that limits equipment. Sewer and water connections for multiple units may require larger service lines than the lot currently has.
Utility connection charges, stormwater requirements and any impact or general facilities charges can add meaningfully to soft costs on a multi-unit project. Get written estimates from the city and utilities before you finalize the budget, and carry a contingency of at least 5% to 10% of hard costs.
Energy code requirements in Washington are among the stricter in the country, which affects insulation, windows, ventilation and heating equipment. Make sure your plans and budget reflect the current code, since a plan drawn to an older standard can need costly revisions at permit review.
Send the lot address, plans, budget, schedule and your build experience. Use the form below or call (877) 298-1001, and use our draw schedule calculator to plan how funds will flow through the season.
On loan-to-cost, covering land, hard costs and soft costs, with terms set per project.
On many lots, yes, under Spokane rules and Washington middle housing law. Confirm the specific lot with the Development Services Center.
Spring is ideal so the building can be dried in before winter. Late starts often lose months to weather.
Funds for each stage are released after an inspection confirms the work. You are reimbursed for completed work.
Yes. Washington requires contractors to register with Labor and Industries, and trades like electrical and plumbing need licenses.
Build-to-rent investors lease the units and refinance into a DSCR loan. Spec builders sell.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Spokane Valley has its own zoning and permit process. Many residential zones allow more than one unit, but confirm the rules for your specific lot with the city before you buy.
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