Small apartment buildings in Casper often offer more rent per dollar than single-family homes, and an eight-unit building clears our loan minimum easily. The tradeoff is exposure to energy-cycle vacancy, so the ratio needs a cushion.
In short: LendingStreet finances 5 to 8 unit residential buildings in Casper with DSCR loans qualified on the combined rent of all units, with no tax returns or W-2s required. Loans start at $150,000 with no stated maximum, maximum LTV on 5-8 units varies by program and is often lower than on 1-4 units, and the standard minimum DSCR is 1.0x. Buildings with 9 or more units use commercial financing.
Most 5-8 unit buildings in Casper are older two-story walk-ups and converted houses in central Casper, North Casper and near downtown, plus a smaller number of newer buildings on the west and east sides. Many were built when earlier energy booms brought workers to town.
Tenants include energy and trades workers, students and staff at Casper College, hospital workers and service employees. Units with off-street parking, in-unit laundry and updated kitchens rent faster.
Many of these buildings trade quietly between local owners. Relationships with property managers and agents who handle small multi-unit sales help you see them before they are listed widely.
This example is illustrative and not a quote. An investor buys an eight-unit building for $760,000. Each unit rents for $900, for $7,200 a month. At 75% LTV the loan is $570,000. Estimated principal and interest is about $3,937, and with assumed taxes and insurance the payment is about $4,937. The DSCR is about 1.46x.
If the program sets a lower maximum LTV for this building, the investor brings more cash and the ratio improves.
At these prices, an eight-unit building can often clear 1.0x at higher leverage than a single-family home in the same neighborhood, because combined rent is high relative to the price.
| Item | Amount |
|---|---|
| Purchase price | $760,000 |
| Loan amount (75% LTV) | $570,000 |
| Estimated principal and interest (30-year) | $3,937 |
| Property taxes (monthly, assumed) | $400 |
| Insurance (monthly, assumed) | $600 |
| Total monthly payment | $4,937 |
| Monthly rent used | $7,200 |
| DSCR | 1.46x |
Casper investors should check what happens if energy activity slows and units sit empty. With six of eight units rented, income drops to $5,400 a month, which covers about 1.09x of the payment in this example.
The loan is underwritten on market rent for all units, but your cash flow is not. Keep reserves of several months of payments, and favor buildings with staggered lease dates and a mix of tenant employers so a single layoff wave does not empty the building.
Running this kind of stress test before you buy is the best protection against a slowdown that lasts longer than expected.
Older Casper buildings often have a shared boiler or a single water meter, so the owner pays heat and water. These costs are not in the DSCR, but they reduce your cash flow, and Casper winters make heating a real line. Review 12 months of utility bills before you buy and consider separate meters during renovation where allowed.
Some owners add a flat utility fee to leases or install separate meters during renovation. Check City of Casper rules and your leases before changing how utilities are billed.
The ratio is the same as on smaller properties, but the review is deeper.
A professional property manager is not required on every program, but on an older eight-unit building it can strengthen the file and reduce turnover.
Wyoming uses a 9.5% assessment ratio for residential property, and 5-8 unit buildings are generally taxed as residential. There is no transfer tax. Insurance for a multi-unit building should cover the full structure and loss of rents, with wind and hail deductibles you can live with.
Because sale prices are not public in Wyoming and Casper has few small multi-unit sales, appraisers rely on the income approach and whatever comparables they can confirm.
Expect the appraiser to request the rent roll and an expense statement for the income approach, so have them organized before the inspection.
Buildings with several vacant units or major deferred maintenance may not support a DSCR loan yet. A bridge or fix and flip loan can fund the purchase and repairs, followed by a 5-8 unit DSCR refinance once units are leased.
This two-step plan lets you buy a building below its stabilized value and refinance once the work and lease-up are done.
Lenders will want to see the renovation scope, budget and lease-up plan, so the refinance terms can be sketched out before you buy.
If you are looking at a building with 9 or more units, our multifamily loans page covers commercial options. This page and program are for 5-8 unit residential buildings only.
Mixed-use buildings with storefronts also fall outside this residential program.
For buildings right at the 8-unit line, confirm the legal unit count before applying, since a ninth unit, even an unpermitted one, changes the program.
Send the rent roll, leases, 12 months of expenses, the purchase contract or payoff and photos. Call (877) 298-1001 or use the form below.
We can also review a building you already own for a refinance on the same program.
For our programs, 5-8 units are residential DSCR loans. Nine or more units are commercial.
It varies by program and is often lower than on 1-4 unit properties. Your term sheet will show the maximum for your building.
Many programs use market rent for vacant units, but a building with many vacancies may need a bridge loan first. Market rent is estimated by the appraiser.
No. DSCR uses rent and the mortgage payment with taxes and insurance, but utilities affect your real cash flow. Review 12 months of bills before you buy.
Mixed-use buildings fall under commercial or mixed-use programs, not this one.
It helps on larger buildings, and requirements vary by program. A local property manager can also strengthen the file.
Lenders set a minimum, but in Casper several months of payments is a sensible cushion given energy-cycle vacancy.
No. These are business-purpose loans on non-owner-occupied property. The borrower, usually an LLC, holds the property as a rental or resale investment.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.