Old East Dallas, Lower Greenville and Oak Lawn still have small 1950s and 1960s apartment buildings with six or eight units, and Oak Cliff has a mix of fourplexes and small walk-ups. The Texas property tax bill after a sale is the line that most often decides these files.
In short: Yes, LendingStreet finances 5 to 8 unit rental buildings in Dallas with DSCR loans that qualify on the combined rent of all units, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000 with no stated maximum, the standard minimum DSCR is 1.0x and maximum LTV on 5-8 units varies by program. In Dallas, property taxes after a sale, the age of 1950s and 1960s buildings and the city's STR rules are the items to check first.
Old East Dallas, Junius Heights, Lower Greenville and Lakewood have small 1950s and 1960s brick buildings with six to eight units. Oak Lawn, near Uptown, has similar buildings at higher prices.
In Oak Cliff, Bishop Arts, Kessler and Winnetka Heights have fourplexes and small walk-ups. Garland, Irving and Mesquite add more affordable options.
Many of these buildings were built in the 1950s and 1960s with flat roofs, cast iron drain lines and original electrical panels. Renovated ones in Lower Greenville and Lakewood trade at higher prices, while unrenovated buildings in Old East Dallas and Oak Cliff often need work.
| Area | Typical building | What to check |
|---|---|---|
| Old East Dallas, Lower Greenville | 1950s-60s brick, 6-8 units | Tax after sale, original systems |
| Oak Lawn | Small buildings near Uptown | High prices, parking |
| Oak Cliff, Bishop Arts | Fourplexes and walk-ups | Renovation quality, rent support |
A building with five to eight units is still residential for our programs; nine or more units moves to commercial or multifamily financing. The loan qualifies on the debt service coverage ratio: the combined rent of every unit divided by the monthly payment of principal, interest, taxes, insurance and any HOA dues.
DSCR loans start at $150,000 with no stated maximum, the standard minimum DSCR is 1.0x and the minimum credit score is 620. You do not provide W-2s or tax returns, LLC borrowers are standard and 30-year terms are available. Maximum LTV on 5-8 unit buildings can be lower than on a single-family home or duplex, so leverage varies by program.
If you are coming from fourplexes, expect the same core process with more paperwork: a full rent roll, leases for every occupied unit and an insurance policy that covers the whole building. If your plan is to buy several smaller buildings instead, a blanket portfolio loan can combine five or more rentals under one loan.
Texas has high property taxes and no homestead exemption for investors. The Dallas Central Appraisal District often revalues after a sale. A temporary 20% annual cap on increases for non-homestead property under about $5 million was adopted in 2023; confirm whether it still applies when you buy.
Texas does not charge a transfer tax or mortgage tax.
Dallas adopted rules in 2023 that would bar short-term rentals in single-family zoning, and those rules were challenged in court. Most five to eight unit buildings are underwritten on 12-month leases.
Check for open code cases and confirm the legal unit count.
Dallas requires many rental properties to register with the city, and multi-tenant buildings can be subject to inspections. Confirm current requirements with Dallas Code Compliance before you close.
This example is illustrative and not a quote. An investor buys a 8-unit 1960s brick building in Old East Dallas for $1,050,000. The units average $1,150 a month, so gross rent is $9,200. Taxes are budgeted at $1,660 a month and insurance at $500.
At 75% LTV the loan is $787,500, estimated principal and interest is about $5,506 and the total payment is about $7,666, for a DSCR of about 1.20x. At 70% LTV the loan drops to $735,000, the total payment to about $7,299 and the DSCR rises to about 1.26x. The Texas tax bill is the largest cost after principal and interest, so budget on the purchase price.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $787,500 | $735,000 |
| Gross monthly rent | $9,200 | $9,200 |
| Estimated principal and interest | $5,506 | $5,139 |
| Property taxes | $1,660 | $1,660 |
| Insurance | $500 | $500 |
| Total monthly payment | $7,666 | $7,299 |
| DSCR | About 1.20x | About 1.26x |
With six or eight tenants, small gaps add up. One unit leased below market, another sitting vacant and a third on a month-to-month arrangement can pull the qualifying rent down by several hundred dollars a month.
The appraisal on a building this size typically weighs comparable sales and the building's income. Bring current leases for every occupied unit and a realistic market rent for any vacant one, and the ratio you calculate will be much closer to the one underwriting uses.
North Texas is one of the most hail-prone areas in the country, and insurers often use percentage-based wind and hail deductibles. Older roofs can raise premiums.
Some areas near the Trinity River and White Rock Creek are in flood zones.
Dallas's job base, from downtown and Uptown to the medical district and the corporate campuses north of the city, supports steady rental demand.
New apartment supply has added competition, so use realistic rents.
North Texas clay soils cause foundation movement, so ask about prior foundation repairs and plumbing leaks under slab foundations.
Underwriting goes faster when the rent and expenses are documented up front. Gather the following, then get a quote through the form below or by phone at (877) 298-1001.
LendingStreet is an investment property financing company. Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, unit mix, rent roll and price, and we will run the ratio at a few loan amounts and come back with options, including sub-1.0 DSCR programs where they fit.
Investors do not get homestead exemptions, and a sale often triggers a revaluation.
Dallas STR rules are in flux. Most small buildings are underwritten on long-term leases.
Yes. Fourplexes use our 2-4 unit programs, and 5 to 8 unit buildings use this program.
Dallas requires many rental properties to register, and multi-tenant buildings may be inspected. Check with Dallas Code Compliance.
Yes. Cash-out goes up to 75% LTV on some programs, often lower on 5-8 units, and seasoning varies by program.
Underwriting looks at leases and market rent for each unit. A vacant unit may be counted at market rent on some programs, but documented leases help.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
On our programs, buildings with up to 8 units are residential. Nine or more units is commercial financing.
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