Denver's classic small apartment building is a brick walk-up from the 1920s to the 1960s with six or eight units, found by the hundreds in Capitol Hill, Cheesman Park and Congress Park. Denver's rental license and inspection requirement applies to every one of them.
In short: Yes, LendingStreet finances 5 to 8 unit rental buildings in Denver 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 Denver, the city's residential rental license, Colorado's two-year reassessment cycle and hail-driven insurance costs are the items to plan for.
Capitol Hill, Cheesman Park, Congress Park and Uptown have many brick walk-ups with six to eight units, most built between the 1920s and 1960s. Baker, Highland, Sunnyside and West Highland have smaller buildings and converted houses.
Aurora, Lakewood and Englewood add 1960s and 1970s small buildings at lower prices. Neighborhoods near light rail stations draw steady demand.
Many of these walk-ups have radiator heat from a shared boiler, limited off-street parking and small units, which suits renters who want to live close to downtown. Garden-level units are common and should be counted only if they are legal, permitted units.
| Area | Typical building | What to check |
|---|---|---|
| Capitol Hill, Cheesman Park | 1920s-60s brick walk-ups | Rental license, boilers, parking |
| Highland, Sunnyside, Baker | Smaller buildings and conversions | High prices, renovation quality |
| Aurora, Lakewood, Englewood | 1960s-70s small buildings | Separate city rules, updated systems |
Lenders treat one to four units and five to eight units a little differently. Both are residential on our programs, but a five to eight unit building has more rent to verify, a larger insurance policy and usually a different appraisal approach that leans on the building's income and comparable small-building sales in Denver.
The core terms are the same: qualify on rent with a 1.0x standard minimum DSCR (sub-1.0 programs exist), 620 minimum credit, no W-2s or tax returns, LLC borrowers welcome and loans from $150,000 with no stated maximum. Maximum LTV can be lower on five to eight units than on a fourplex, and it varies by program.
The rent on each unit is added together, so one strong unit can offset a weaker one, but every unit's lease or market rent still has to be documented. If the building is not yet stabilized, a bridge loan can carry it through renovation and lease-up before a DSCR refinance.
Colorado reassesses property every two years, and the residential assessment ratio has changed several times in recent legislative sessions. Use the current Denver assessor value and mill levy, and ask whether a new reassessment is coming.
Colorado's documentary fee on deeds is small, $0.01 per $100 of value. Title, recording and lender costs make up most of closing costs.
Denver requires a residential rental license for long-term rentals, which includes an inspection by a certified inspector. A building without current licenses for its units can delay leasing, so ask the seller for license status before you close.
Denver short-term rentals must be the host's primary residence, so five to eight unit buildings are underwritten on 12-month leases. Aurora, Lakewood and other suburbs have their own rules.
Colorado adopted for-cause eviction rules in 2024 that limit when a landlord can decline to renew a lease. Review existing leases and tenant history before you buy a building with long-term tenants in place.
This example is illustrative and not a quote. Take a 8-unit brick walk-up in Capitol Hill under contract at $1,600,000, with average rent of $1,350 per unit, or $10,800 a month in total. Monthly taxes are estimated at $650 and insurance at $650.
At 75% LTV the loan is $1,200,000, estimated principal and interest is about $8,391 and the total payment is about $9,691, for a DSCR of about 1.11x. At 70% LTV the loan drops to $1,120,000, the total payment to about $9,131 and the DSCR rises to about 1.18x. Denver's taxes are moderate, but high prices and hail-driven insurance keep the ratio thin at 75% LTV.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $1,200,000 | $1,120,000 |
| Gross monthly rent | $10,800 | $10,800 |
| Estimated principal and interest | $8,391 | $7,831 |
| Property taxes | $650 | $650 |
| Insurance | $650 | $650 |
| Total monthly payment | $9,691 | $9,131 |
| DSCR | About 1.11x | About 1.18x |
Underwriting adds up the rent on each unit, then checks it against what the appraiser says the market supports. If several units are leased well below market, or the seller cannot produce leases, the figure used for the ratio may be lower than the asking-price math assumed.
Ask for signed leases, a unit-by-unit rent roll and a few months of deposits before you finalize your offer, so the income you are paying for is the income the file can use.
The Front Range gets frequent hail, and insurers have raised premiums and deductibles. Older brick buildings often have flat or low-slope roofs and old boilers, which insurers will ask about.
Some properties near Cherry Creek and the South Platte River are in mapped flood zones.
Denver's job base, from downtown offices to the medical campuses and the tech corridor, supports steady rental demand. Capitol Hill buildings draw renters who want to walk to work and restaurants.
New apartment supply has added competition and concessions, so use rents supported by current leases.
A complete package gets a faster and clearer answer. Have these ready before you call (877) 298-1001 or use the form below.
LendingStreet underwrites small buildings on their rent, not your tax returns. Our investor loans are business-purpose loans on non-owner-occupied property. Send what you have and we will tell you plainly what leverage the building supports.
Denver requires a residential rental license with an inspection for long-term rentals. Check the building's license status before closing.
Denver requires STRs to be the host's primary residence, so small buildings are underwritten on long-term leases.
Every two years. Check the current Denver assessor value.
Colorado's 2024 for-cause eviction rules limit non-renewals in many cases. Review the leases and the rules before you buy.
No. The loan qualifies on the building's rent. You do not provide W-2s or tax returns.
Yes. LLC borrowers are standard on our DSCR programs, and you sign for the loan personally.
Yes. Cash-out goes up to 75% LTV on some programs, often lower on 5-8 units, and seasoning varies by program.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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