Small apartment buildings are one of the few property types in Kootenai County where rent still keeps pace with price. Newer six- and eight-unit buildings in Post Falls and Hayden and older ones near downtown Coeur d'Alene give investors several rents on one roof.
In short: LendingStreet finances 5-8 unit residential buildings in Coeur d'Alene, Post Falls, Hayden and across Kootenai County with DSCR loans that qualify on combined rent, not personal income. Loans start at $150,000 with no stated maximum, use a 1.0x standard minimum DSCR and a 620 credit score, and close in an LLC. Maximum LTV on 5-8 unit properties varies by program and is often lower than on 1-4 unit rentals.
In Post Falls and Hayden, many 5-8 unit buildings were built in the last two decades on multifamily-zoned lots near arterials such as Seltice Way and Government Way. They tend to have modern systems and lower maintenance. In Coeur d'Alene, older buildings near downtown, Midtown and the North Idaho College area offer walkable locations with more upkeep.
Rathdrum and Spirit Lake have a few small buildings, usually at lower prices with a smaller tenant pool.
Buildings in this size range are often owned by local investors who built or bought them years ago, and many trade off-market or through relationships. When one is listed, buyers need financing lined up quickly, which is why getting a quote before you write an offer helps.
| Area | Typical building | What to review |
|---|---|---|
| Post Falls | Newer six- and eight-plexes | HOA or shared-access agreements, tax assessment |
| Hayden | Newer and 1990s buildings | Parking and snow removal costs |
| Coeur d'Alene core | Older walk-ups and converted houses | Wiring, roof, legal unit count |
| Rathdrum, Spirit Lake | Smaller older buildings | Vacancy and tenant depth |
The ratio uses combined rent from all units against the full payment, including taxes, insurance and any association dues. Leases for each unit and a rent roll are standard. Some programs apply a vacancy factor.
Leverage on 5-8 unit properties varies by program and is often lower than on single-family or 2-4 unit rentals. Nine or more units is commercial; see /multifamily-loans.html.
Because the property is income-producing, the appraiser will look closely at the rent roll and at comparable rents for similar units. Below-market leases reduce the rent used in the ratio, while recent market-rate leases support it.
This example is illustrative and not a quote. An investor buys a newer Post Falls eightplex for $1,640,000. Each unit rents for $1,375, for $11,000 a month. Taxes are budgeted at full value at $610 a month and insurance at $460.
At 75% LTV the loan is $1,230,000, with estimated principal and interest of about $8,391 and a total payment of about $9,461, for a DSCR of about 1.16x. If the program caps leverage at 70%, the loan is $1,148,000, the payment about $8,901 and DSCR about 1.24x.
In this example the building clears comfortably at either leverage level, which is typical of newer eightplexes with market rents. Older buildings with below-market leases or owner-paid utilities may show a thinner ratio and benefit from the lower loan amount.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan | $1,230,000 | $1,148,000 |
| Total payment | $9,461 | $8,901 |
| Monthly rent (8 units) | $11,000 | $11,000 |
| DSCR | 1.16x | 1.24x |
Snow removal, parking lot upkeep and winter heating of common areas are real costs for small buildings here. Some owners pay water, sewer and trash, which reduces net income. Those costs are not part of the DSCR payment, but they affect cash flow and the appraiser's income view.
Insurance on newer buildings is often reasonable; older buildings with original wiring or roofs may cost more to insure.
A professional property manager typically charges a percentage of collected rent, and many out-of-area owners use one for buildings this size. Factor that in when comparing a building's cash flow to a set of duplexes you might manage yourself.
Small apartment buildings do not receive the homeowner's exemption, and Idaho reassesses to market value annually. Use the current Kootenai County assessment and levy, not a figure from several years ago.
If a building was recently built or improved, the first full assessment after completion can raise taxes noticeably. Ask the seller for the assessment history and look at whether the current bill reflects the finished building.
Confirm the legal unit count with the city or county, especially for older converted houses near downtown. Review leases, deposits and any concessions, and inspect roofs, boilers or furnaces, and water heaters. Newer buildings may have builder warranties that transfer.
For buildings built in the last twenty years, ask for any builder warranty documents, appliance and roof warranties, and the original certificate of occupancy. For older buildings, a sewer scope and a roof inspection are worth the cost before you close.
Ask the seller for twelve months of operating statements, not a pro forma, and compare them with bank deposits.
Demand for one- and two-bedroom units comes from healthcare workers at Kootenai Health, college students and staff, service and tourism workers, and commuters to Spokane. A building near I-90 or major employers typically leases faster.
Units with in-unit laundry, a garage or covered parking, and good snow removal tend to rent faster and hold tenants through winter, which supports steadier occupancy and a stronger rent history at refinance.
Proximity to Kootenai Health and the I-90 corridor tends to shorten vacancies between tenants.
Some investors weigh one eightplex against four duplexes. One building means one roof, one closing and one loan; several duplexes can be sold separately. If you already own five or more rentals, a blanket portfolio loan can combine them; see /blanket-portfolio-loans.html.
Financing also differs. Four duplexes would need four loans or a blanket loan, while one eightplex needs one DSCR loan. Compare closing costs, management time and exit flexibility before you decide.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, rent roll, price and expenses through the form below or call (877) 298-1001. See our Idaho 5-8 unit page for statewide details.
For our programs, 5-8 unit buildings are residential and can use DSCR financing. Nine or more units is commercial.
It varies by program and is often lower than on 1-4 unit properties.
Combined rent of all units divided by the full monthly payment including taxes and insurance.
They are not part of the DSCR payment, but they reduce cash flow and can affect the appraiser's income review.
No. The loan qualifies on the building's rent, credit and reserves.
Taxes follow the county's assessed market value, reassessed annually, with no homeowner's exemption.
Yes, if the five units are legal. Confirm the unit count with the city or county.
Yes. LLC borrowers are standard.
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