Cincinnati has one of the largest collections of 19th century Italianate buildings in the country, and many of them are five to eight unit apartment buildings. From Over-the-Rhine to Northside, they rent well, but hillsides and historic rules add to the checklist.
In short: LendingStreet finances 5 to 8 unit rental buildings in Cincinnati with DSCR loans that qualify on the building's rent, with no W-2s or tax returns and LLC borrowers standard. Loans start at $150,000 with no stated maximum and the standard minimum DSCR is 1.0x. In Cincinnati, check for hillside stability, historic district rules and any tax abatement that is about to end.
Over-the-Rhine and Pendleton have dense blocks of three- and four-story brick Italianate buildings, many with five to eight units, often with a storefront on the ground floor. Clifton, Corryville and CUF surround the University of Cincinnati and its medical campus. Northside, Walnut Hills and Mount Auburn have similar buildings at varying prices.
East and West Price Hill have brick apartment buildings at lower prices per unit, while Hyde Park and Oakley have smaller numbers of buildings at higher prices.
Many buildings have been renovated with historic tax credits or city tax abatements, which affects both price and tax bill.
| Area | Typical 5-8 unit stock | What to check |
|---|---|---|
| Over-the-Rhine, Pendleton | Brick Italianates, mixed-use | Historic review, storefront share |
| Clifton, Corryville, CUF | Walk-ups near the university | Student lease cycle |
| Northside, Walnut Hills | Older brick buildings | Renovation quality |
| Price Hill | Brick apartment buildings | Hillside conditions, condition |
The ratio is simple: total monthly rent divided by the monthly payment, where the payment includes principal, interest, taxes, insurance and any HOA dues. A 1.0x ratio means the rent exactly covers the payment, which is the standard minimum. Programs below 1.0x exist for buildings with a thin margin.
Five to eight units still counts as residential under our programs, which is why you can finance one with no W-2s or tax returns and an LLC as the borrower. Expect leverage that varies by program: up to 80% LTV on a purchase on some programs, often less on 5-8 units and larger balances, and up to 75% on a cash-out. Loans start at $150,000 with no stated maximum and a 620 minimum credit score. Nine units and up is a commercial loan.
Renovated Over-the-Rhine units can rent well above older stock nearby. We use actual leases and an appraiser's market rent estimate, so comparable leases help support higher rents.
Many renovated Cincinnati buildings carry residential tax abatements that reduce taxes on the improvement for a set number of years. When an abatement has only a few years left, we budget the full tax bill, because the loan will carry it for most of its term. Check the Hamilton County auditor record for the abatement end date.
Ohio charges a real property conveyance fee set by each county, customarily paid by the seller. Buyers pay title, recording and closing fees plus prepaid taxes and insurance. Ohio does not have rent control.
Over-the-Rhine and several other neighborhoods are historic districts, where exterior changes need review by the city. Renovation timelines and budgets should allow for that.
Cincinnati has adopted tenant protections such as limits on late fees and a right to pay to stay in some cases. Ohio does not have rent control, but keep leases and notices current with city and state law.
For a mixed-use building, the commercial share matters. A building that is mostly apartments with a small storefront may fit a residential DSCR loan; a larger commercial share may need commercial financing.
This example is illustrative and not a quote. An investor buys a 6-unit brick Italianate in Northside for $900,000. The units rent for about $1,350 each, or $8,100 a month. Taxes are budgeted at $1,500 a month on the full value with no abatement and insurance at $600.
At 75% LTV, the loan is $675,000. On a 30-year fixed, principal and interest is about $4,720, the full payment with taxes and insurance is about $6,820, and DSCR is about 1.19x. At 70% LTV, the loan is $630,000, principal and interest is about $4,405, the payment is about $6,505 and DSCR is about 1.25x.
Both loans clear 1.0x. If the building still had an abatement with only a couple of years left, using the abated bill would overstate the ratio. The 70% loan needs about $45,000 more at closing.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Gross monthly rent | $8,100 | $8,100 |
| Loan amount | $675,000 | $630,000 |
| Principal and interest | $4,720 | $4,405 |
| Property taxes | $1,500 | $1,500 |
| Insurance | $600 | $600 |
| Total monthly payment | $6,820 | $6,505 |
| DSCR | About 1.19x | About 1.25x |
Cincinnati's hills are prone to landslides in some areas, and retaining walls and drainage behind hillside buildings deserve a close look. Older brick buildings need periodic tuckpointing and roof work.
Have these ready when you request a quote, and the review moves quickly.
LendingStreet finances business-purpose DSCR loans on non-owner-occupied rentals throughout Cincinnati, Hamilton County and Northern Kentucky. Our investor loans are business-purpose loans on non-owner-occupied property.
Use the form below or call (877) 298-1001 with the address, price, rent roll and how much you want to borrow. We check the ratio at more than one loan amount, on the taxes and insurance you will actually pay, and send back clear options. Buildings with vacancies or deferred work may fit a short-term bridge loan before a DSCR refinance.
It lowers the current bill, but if it ends soon we budget the full tax. Check the end date on the county auditor record.
Often, if the building is mostly residential. A larger commercial share may move it to commercial financing. Send the rent roll and we will tell you which fits.
Not by themselves, but slope problems can raise insurance and repair costs. Have retaining walls and drainage inspected.
Not with us. Our residential DSCR programs cover 1 to 8 units, so a 6-unit building qualifies on rent like any other rental. Nine units and up is financed as commercial.
Yes. The building's rent is what qualifies the loan. We look at the rent roll, leases, credit (620 minimum) and reserves, not W-2s or tax returns.
We look at a smaller loan, a sub-1.0 DSCR program or a bridge loan while you raise rents or fill vacancies, with a DSCR refinance once the building supports it.
Yes, up to 75% LTV on cash-out, depending on the program, as long as the building's rent covers the new payment at the program minimum. How long you need to own it first varies by program.
No. Our investor loans are business-purpose loans on non-owner-occupied property. Every unit should be rented to tenants.
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