Cheyenne does not have many 5-8 unit buildings, and the ones that trade tend to be older walk-ups near downtown or newer townhome-style buildings on the east side. When one comes up, residential DSCR financing can cover it without a commercial loan.
In short: LendingStreet finances 5 to 8 unit residential buildings in Cheyenne with DSCR loans qualified on the combined rent of all units, with no tax returns or W-2s. Loans start at $150,000 with no stated maximum, maximum LTV on 5-8 units varies by program and is often below the 1-4 unit limits, and the standard minimum DSCR is 1.0x. Buildings with 9 or more units fall under commercial financing.
Older stock includes brick walk-ups and converted houses near downtown, Holliday Park and the Rainsford Historic District, often built before 1970 with shared boilers or older electrical. Newer stock includes small apartment and townhome buildings on the east and south sides, closer to Dell Range Boulevard and newer retail.
Tenants include young airmen, state workers, hospital staff at Cheyenne Regional Medical Center and students at Laramie County Community College.
Because there are so few of these buildings, many trade off-market between local owners. Investors who know property managers and agents who handle small multi-unit sales often see them first.
The DSCR math is the same, but lenders look harder at the building as a whole.
The upside is that a 5-8 unit building can deliver more rent per dollar of purchase price than a single-family home, which often makes the ratio easier to clear.
This example is illustrative and not a quote. An investor buys a six-unit building for $810,000. Each unit rents for $1,100, for $6,600 a month. At 75% LTV the loan is $607,500. Estimated principal and interest is about $4,196, and with assumed taxes and insurance the payment is about $5,186.
The DSCR is about 1.27x. If the program caps leverage lower on this building, the ratio improves and the investor brings more cash.
Note that this ratio uses only the mortgage payment with taxes and insurance. If the owner also pays heat and water, the real cash flow will be lower than the ratio suggests.
| Item | Amount |
|---|---|
| Purchase price | $810,000 |
| Loan amount (75% LTV) | $607,500 |
| Estimated principal and interest (30-year) | $4,196 |
| Property taxes (monthly, assumed) | $430 |
| Insurance (monthly, assumed) | $560 |
| Total monthly payment | $5,186 |
| Monthly rent used | $6,600 |
| DSCR | 1.27x |
Many older Cheyenne buildings have a single boiler or shared water meter, so the owner pays heat and water. Those costs are not part of the DSCR payment, but Cheyenne winters make them large. Look at 12 months of utility bills before you buy and consider submetering where practical.
Some investors add utility charges to leases or convert to separate meters during a renovation. Check City of Cheyenne and Board of Public Utilities rules before changing metering.
A 5-8 unit building needs a policy that covers the full structure, and the wind and hail exposure is the same as any Cheyenne property, just bigger. Older buildings may need updated electrical or roofing to get good quotes.
Ask for a quote that includes loss of rents coverage, which helps if a unit is damaged and empty during repairs.
Confirm that the building is a legal 5-8 unit use under City of Cheyenne zoning. Converted houses sometimes have more units than the zoning allows, which can affect value and insurability. Fire separation and egress matter in older walk-ups.
Parking is another item. Older downtown buildings may not have off-street parking for every unit, which can affect rents and future plans.
Wyoming uses a 9.5% assessment ratio for residential property, and 5-8 unit buildings are typically treated as residential. Because Wyoming is a non-disclosure state and small multi-unit sales are scarce in Cheyenne, bring rent rolls, leases and expense history to support the value.
Expect the appraiser to request expense history, including utilities, repairs and management, as part of the income approach.
Lenders may also look at how long the building has been fully leased and at tenant turnover, especially near the base where moves are frequent. A stable rent roll with staggered lease dates supports the value.
Older walk-ups near downtown often sell at a lower price per unit but need capital: roofs, boilers, windows and electrical. Newer east-side buildings cost more per unit but come with lower maintenance and stronger rents.
If an older building needs major work or has several vacant units, a bridge or fix and flip loan can fund the upgrades first, followed by a DSCR refinance once it is leased.
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. For larger buildings, see our multifamily loans page.
We can also review a building you already own for a rate-and-term or cash-out refinance on the same 5-8 unit program.
For our programs, 5-8 unit buildings 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 after the lender reviews rents, condition and your experience.
DSCR uses rent and the mortgage payment, including taxes and insurance. Utilities are not in the ratio, but they affect your actual cash flow. Lenders and appraisers still review expenses on 5-8 unit buildings to judge whether the building can be maintained.
Mixed-use buildings fall under commercial or mixed-use financing, not this residential program.
The appraiser may use market rent for vacant units on some programs. A building that is mostly vacant may suit a bridge loan first. Once the building is stabilized, a DSCR refinance can replace the bridge loan.
Experience helps, especially on larger buildings, but requirements vary by program. A property manager with local multi-unit experience can help strengthen a file.
If it needs significant work or has many vacancies, a bridge or fix and flip loan may fit first, with a DSCR refinance after it is stabilized.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so a home you or your family will live in does not qualify.
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