Dayton's small apartment buildings are older brick walk-ups and converted houses in the Oregon District, South Park and around the University of Dayton, plus newer small buildings in Kettering, Beavercreek and Fairborn. Low prices and Wright-Patterson demand keep many ratios comfortable.
In short: Yes, LendingStreet finances 5 to 8 unit rental buildings in Dayton 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 Dayton, the main items are Montgomery County taxes on the full value, the age of the building and how well the rent roll is documented.
The Oregon District, South Park, St. Anne's Hill and Dayton View have older brick walk-ups and Victorian-era houses divided into five to eight units. The blocks around the University of Dayton have converted houses that lease to students on the academic calendar.
Kettering and Oakwood, just south of the city, have small 1950s and 1960s brick buildings. Beavercreek, Huber Heights and Fairborn, near Wright-Patterson Air Force Base and Wright State University, add newer small complexes.
| Area | Typical building | What to check |
|---|---|---|
| Oregon District, South Park, St. Anne's Hill | Older brick walk-ups and conversions | Historic district review, boilers, wiring |
| Near the University of Dayton | Converted houses | Student turnover, parking, unit layouts |
| Kettering, Beavercreek, Fairborn | 1950s-70s and newer small buildings | Military turnover, updated systems |
Our residential programs cover one to eight units, so a six or eight unit building in Dayton is underwritten much like a fourplex, only with more rent and more units to document. Properties with nine or more units are commercial and are handled separately on our commercial programs.
Qualification runs on the property's rent, not your income: no W-2s, no tax returns, LLC ownership allowed. Loans start at $150,000 with no stated maximum, the minimum credit score is 620 and standard programs look for a DSCR of at least 1.0x. Purchases can go up to 80% LTV on some programs and cash-out up to 75%, but 5-8 unit buildings often get lower maximums; it varies by program.
Buildings that need major work before they can be leased are often financed first with a bridge or rehab loan, then refinanced into a DSCR loan once the units are rented. Seasoning for that refinance varies by program, so plan the timing before you buy.
Ohio taxes real property on a 35% assessment ratio, and investors do not receive the owner-occupancy credit or homestead reductions. Montgomery County reappraises on a six-year cycle with an update in between, and recent cycles raised values in many neighborhoods. Budget on the current auditor value and the full effective rate.
Ohio's conveyance fee is customarily paid by the seller. Title, recording and lender costs still count toward your cash to close.
Check with the City of Dayton and any suburb for rental registration and code requirements before closing, and confirm the building's legal unit count matches how it is being rented.
The Oregon District, South Park and St. Anne's Hill are historic districts, so exterior work such as windows, porches and siding needs review. Plan renovation timing around approvals.
This example is illustrative and not a quote. Picture a 6-unit brick walk-up in South Park priced at $430,000. With units averaging $775, the building brings in $4,650 a month. The budget uses $650 a month for taxes and $320 for insurance.
At 75% LTV the loan is $322,500, estimated principal and interest is about $2,255 and the total payment is about $3,225, for a DSCR of about 1.44x. At 70% LTV the loan drops to $301,000, the total payment to about $3,075 and the DSCR rises to about 1.51x. Low prices let the ratio clear 1.0x with room at either loan amount.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $322,500 | $301,000 |
| Gross monthly rent | $4,650 | $4,650 |
| Estimated principal and interest | $2,255 | $2,105 |
| Property taxes | $650 | $650 |
| Insurance | $320 | $320 |
| Total monthly payment | $3,225 | $3,075 |
| DSCR | About 1.44x | About 1.51x |
On a five to eight unit building, the appraiser usually looks at comparable small-building sales and at the income the units produce. The rent used for the ratio comes from current leases and a market rent estimate for each unit, and the lower of the two figures is often what counts.
That makes a clean rent roll worth the effort. List every unit, its rent, its lease dates and any concessions, and be ready to explain units that are vacant or leased below market.
The 2019 Memorial Day tornadoes hit parts of the Dayton area, and severe spring storms are a normal part of the insurance picture. Older buildings often have aging roofs, shared boilers and outdated electrical panels that insurers ask about.
Some areas near the Great Miami River and its tributaries are in mapped flood zones, though much of the city sits behind the levee system. Check the FEMA map early.
Wright-Patterson Air Force Base is one of the largest single-site employers in Ohio, and Premier Health, Kettering Health, CareSource and the University of Dayton add more. A five to eight unit building near those job centers can hold steady occupancy.
Prices are low compared with Columbus or Cincinnati, so many Dayton five to eight unit files land between $300,000 and $600,000, and the ratio often clears 1.0x with room. That cushion helps when a unit turns over.
Before you apply, pull together the paperwork that shows the building's income and costs. Then send it through the form below or call (877) 298-1001.
Our investor loans are business-purpose loans on non-owner-occupied property, and LendingStreet reviews each building on its own rent and costs. Share the rent roll, taxes and insurance quote, and the team will show you how the ratio changes at different loan amounts.
No. Investors pay tax on the full value without the owner-occupancy credit or homestead reductions.
Yes, if the building has 5 to 8 legal units and the rent supports the payment.
Yes. Exterior changes go through historic review, so plan renovations around approvals.
Not necessarily. The loan qualifies on the rent, but plan for summer turnover and document the leases.
On our programs, buildings with up to 8 units are residential. Nine or more units is commercial financing.
The standard minimum is 1.0x, meaning the rent covers the full monthly payment. Sub-1.0 DSCR programs exist with different pricing and leverage.
Loans start at $150,000 with no stated maximum. Maximum LTV on 5-8 unit buildings can be lower than on 1-4 units and varies by program.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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