Albuquerque's five to eight unit stock is mostly low-rise stucco: courtyard buildings near UNM and Nob Hill, flat-roofed walk-ups in the Southeast Heights and a scattering of small complexes on the West Side. Prices sit below most Western metros, so the rent often carries the payment.
In short: Yes, LendingStreet finances 5 to 8 unit rental buildings in Albuquerque with DSCR loans that qualify on the combined rent of all units, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000 with no stated maximum, the standard minimum DSCR is 1.0x and maximum LTV on 5-8 units varies by program. In Albuquerque, buyers should watch three things: the condition of flat roofs and cooling systems, how New Mexico revalues property after a sale, and how the building fits city rules near UNM and Nob Hill.
Small multi-unit buildings cluster around the University of New Mexico and Central Avenue: Nob Hill, the University Heights area, Ridgecrest and the blocks near the hospitals. Many are 1950s and 1960s stucco courtyard buildings with five to eight units built around a shared yard.
The Southeast Heights and the Fair Heights area have more mid-century walk-ups, often near Kirtland Air Force Base and Sandia National Laboratories. Downtown and Huning Highlands have older conversions, while the West Side and Rio Rancho lean toward newer, larger complexes and single-family homes.
| Area | Typical building | What to check |
|---|---|---|
| Nob Hill, University Heights | 1950s-60s courtyard buildings | Flat roof age, parking, student turnover |
| Southeast Heights, Fair Heights | Mid-century walk-ups | Cooling systems, security, unit updates |
| Downtown, Huning Highlands | Older conversions | Historic overlay rules, separate utilities |
Our residential programs cover one to eight units, so a six or eight unit building in Albuquerque is underwritten much like a fourplex, only with more rent and more units to document. Properties with nine or more units are commercial and are handled separately on our commercial programs.
Qualification runs on the property's rent, not your income: no W-2s, no tax returns, LLC ownership allowed. Loans start at $150,000 with no stated maximum, the minimum credit score is 620 and standard programs look for a DSCR of at least 1.0x. Purchases can go up to 80% LTV on some programs and cash-out up to 75%, but 5-8 unit buildings often get lower maximums; it varies by program.
Buildings that need major work before they can be leased are often financed first with a bridge or rehab loan, then refinanced into a DSCR loan once the units are rented. Seasoning for that refinance varies by program, so plan the timing before you buy.
New Mexico assesses residential property at one-third of value, an assessment ratio of about 33.3%, and limits annual increases in valuation for residential property that stays with the same owner. When a property sells, the county can revalue it to market, so the tax bill you inherit may be lower than the bill you will pay. Budget on your purchase price.
New Mexico does not charge a state real estate transfer tax, which keeps closing costs lower than in many states. Title, recording and lender fees still apply.
Albuquerque does not have a citywide rental license for long-term rentals in the way some cities do, but code enforcement still applies, and short-term rentals require a city permit. Confirm the legal unit count with the city, since some courtyard properties were built or expanded without permits years ago.
Near UNM, look closely at lease terms and turnover. Student-oriented buildings can lease well but turn over every summer, which matters for vacancy and the rent figure an appraiser will use.
This example is illustrative and not a quote. Picture a 6-unit courtyard building in Nob Hill priced at $780,000. With units averaging $1,000, the building brings in $6,000 a month. The budget uses $520 a month for taxes and $300 for insurance.
At 75% LTV the loan is $585,000, estimated principal and interest is about $4,090 and the total payment is about $4,910, for a DSCR of about 1.22x. At 70% LTV the loan drops to $546,000, the total payment to about $4,638 and the DSCR rises to about 1.29x. Budgeting tax on the purchase price, not the seller's capped valuation, keeps the ratio honest.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $585,000 | $546,000 |
| Gross monthly rent | $6,000 | $6,000 |
| Estimated principal and interest | $4,090 | $3,818 |
| Property taxes | $520 | $520 |
| Insurance | $300 | $300 |
| Total monthly payment | $4,910 | $4,638 |
| DSCR | About 1.22x | About 1.29x |
On a five to eight unit building, the appraiser usually looks at comparable small-building sales and at the income the units produce. The rent used for the ratio comes from current leases and a market rent estimate for each unit, and the lower of the two figures is often what counts.
That makes a clean rent roll worth the effort. List every unit, its rent, its lease dates and any concessions, and be ready to explain units that are vacant or leased below market.
Many Albuquerque buildings have flat or low-slope roofs with parapet walls, and roof condition is the first thing insurers and appraisers notice. Older buildings may use evaporative (swamp) coolers rather than refrigerated air. Both affect tenant demand and maintenance budgets.
Hail and wind events happen, and some low-lying areas near arroyos are in mapped flood zones. Get a real insurance quote and a flood determination early.
Tenants come from UNM, the hospital campuses, Kirtland Air Force Base, Sandia National Laboratories and the film and tech employers along the I-25 corridor. Five to eight unit buildings near those job centers can hold steady occupancy without the price tag of Denver or Phoenix.
Many Albuquerque purchases fall between $400,000 and $900,000. At those prices, the ratio often works at 70% to 75% LTV, though leverage on 5-8 units varies by program.
Before you apply, pull together the paperwork that shows the building's income and costs. Then send it through the form below or call (877) 298-1001.
Our investor loans are business-purpose loans on non-owner-occupied property, and LendingStreet reviews each building on its own rent and costs. Share the rent roll, taxes and insurance quote, and the team will show you how the ratio changes at different loan amounts.
New Mexico limits annual valuation increases while a property stays with one owner, but a sale lets the county revalue it to market. Budget taxes on your purchase price.
There is no state real estate transfer tax in New Mexico. Title, recording and lender costs still apply.
Yes, if it has 5 to 8 legal units. The loan qualifies on the combined rent of all units.
No. The loan qualifies on the building's rent. You do not provide W-2s or tax returns.
Yes. LLC borrowers are standard on our DSCR programs, and you sign for the loan personally.
Yes. Cash-out goes up to 75% LTV on some programs, often lower on 5-8 units, and seasoning varies by program.
Underwriting looks at leases and market rent for each unit. A vacant unit may be counted at market rent on some programs, but documented leases help.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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