Columbus is one of the fastest-growing cities in the Midwest, and its five to eight unit buildings, from campus-area walk-ups to Short North conversions, rent to a deep pool of students and young professionals. The catch is that prices and tax assessments have climbed with it.
In short: LendingStreet finances 5 to 8 unit rental buildings in Columbus with DSCR loans that qualify on the building's rent, not your income. LLC borrowers are standard, loans start at $150,000 with no stated maximum and the standard minimum DSCR is 1.0x. In Columbus, recent reappraisals mean the tax bill can jump after you buy, so we size the loan on a realistic tax figure.
The University District and Old North Columbus, around Ohio State, have many brick and frame buildings with five or more units, renting mostly to students on August leases. The Short North, Italian Village and Victorian Village have older houses and small buildings converted to apartments, now at higher prices.
German Village and Merion Village have brick buildings south of downtown, while Olde Towne East, Franklinton and the Hilltop offer lower prices per unit with more renovation.
Clintonville has small apartment buildings along High Street and nearby streets, popular with graduate students and professionals.
| Area | Typical 5-8 unit stock | What to check |
|---|---|---|
| University District, Old North | Campus-area walk-ups and conversions | August lease cycle, wear |
| Short North, Italian Village | Converted houses, small buildings | Higher prices per unit |
| German Village, Merion Village | Brick buildings south of downtown | Historic district rules |
| Olde Towne East, Franklinton, Hilltop | Older buildings at lower prices | Condition, rehab quality |
A DSCR loan on a five to eight unit building qualifies on the building's rent, not your income. We add up the leases or market rents for every unit and divide by the full monthly payment: principal, interest, property taxes, insurance and any association dues. The standard minimum is 1.0x, and sub-1.0 programs exist for buildings that fall a little short.
We treat 1 to 8 units as residential, so a six-family is underwritten as a rental, not as a commercial deal. Purchases go up to 80% LTV on some programs, but maximum leverage on 5-8 units is often lower and varies by program and loan size. Cash-out refinances go up to 75% LTV. Loans start at $150,000 with no stated maximum, 30-year terms are available and the minimum credit score is 620. Buildings with nine or more units move to our multifamily program.
Student buildings near Ohio State often lease a year ahead. We underwrite the signed leases, so a rent roll that already covers the next school year is easier to support.
Franklin County's most recent reappraisal raised values sharply across much of Columbus, and tax bills followed. A seller's bill from before the reappraisal can understate what you will pay. Look up the current value and tax on the county auditor's site and budget on that, or on your purchase price if it is higher.
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.
Franklin County requires owners of residential rental property to register with the county auditor, and Columbus has its own code enforcement for rental housing. Register after closing and update the owner and contact information.
Columbus has adopted tenant protections such as limits on certain fees and source-of-income protections. Use consistent screening and keep your leases current with city rules.
German Village, Victorian Village and Italian Village are historic districts where exterior work needs approval, which affects renovation plans and budgets.
This example is illustrative and not a quote. An investor buys a 6-unit building in Old North Columbus for $1,020,000. The units rent for about $1,450 each, or $8,700 a month. Taxes are budgeted at $1,650 a month on the post-reappraisal value and insurance at $550.
At 75% LTV, the loan is $765,000. On a 30-year fixed, principal and interest is about $5,349, the full payment with taxes and insurance is about $7,549, and DSCR is about 1.15x. At 70% LTV, the loan is $714,000, principal and interest is about $4,992, the payment is about $7,192 and DSCR is about 1.21x.
Both loans clear 1.0x. If the seller's pre-reappraisal tax bill had been used, the ratio would look stronger than it is. The 70% loan needs about $51,000 more at closing.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Gross monthly rent | $8,700 | $8,700 |
| Loan amount | $765,000 | $714,000 |
| Principal and interest | $5,349 | $4,992 |
| Property taxes | $1,650 | $1,650 |
| Insurance | $550 | $550 |
| Total monthly payment | $7,549 | $7,192 |
| DSCR | About 1.15x | About 1.21x |
Campus-area buildings see heavy use and frequent turnover. Older conversions in the Short North and Olde Towne East may have layouts and systems that predate current code.
A complete package gets a faster and clearer answer. Most 5-8 unit files need the following.
Our investor loans are business-purpose loans on non-owner-occupied property. We finance DSCR loans on 5-8 unit rentals across Columbus and Franklin County.
Send the address, price, rent roll and target leverage through the form below, or call (877) 298-1001. We run the ratio on a realistic tax and insurance figure at a few loan amounts and come back with options. If the building needs work before it can qualify on rent, a bridge loan first and a DSCR refinance after is a common path.
Franklin County's recent reappraisal raised values across much of the city. If the seller's bill predates it, budget on the current value or your purchase price.
Yes. Signed student leases count like any other lease in the DSCR calculation, and pre-leasing for the next school year helps.
Yes. Franklin County requires rental property registration with the county auditor. Update it after you close.
Residential. We treat buildings of 1 to 8 units as residential and finance them with DSCR loans that qualify on rent. Buildings with nine or more units move to commercial multifamily financing.
At least 20%, and often more. Purchases go up to 80% LTV on some programs, but maximum leverage on 5-8 units is often lower and varies by program, loan size and the building's ratio.
Yes. LLC borrowers are standard on our DSCR loans. The members usually sign for the loan personally, and we will ask for the LLC's formation documents and operating agreement.
There are options. A lower loan amount raises the ratio, sub-1.0 DSCR programs exist for buildings that are close, and rents that are below market can sometimes be addressed at lease renewal before a refinance.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the building you finance with us cannot be your home.
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