Evansville's small apartment buildings are older brick walk-ups and converted houses near downtown, Haynie's Corner and the University of Evansville. Indiana's property tax caps keep the tax line predictable, and prices are low enough that many buildings carry their payment with room.
In short: Yes, LendingStreet finances 5 to 8 unit rental buildings in Evansville 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 Evansville, the key items are Indiana's tax cap category for rentals, the age of the building and flood exposure near the Ohio River.
Haynie's Corner, the Riverside Historic District and the blocks along Washington Avenue have older brick walk-ups and large houses divided into five to eight units. Bayard Park and Jacobsville add smaller buildings at lower prices.
The area around the University of Evansville has converted houses that lease to students and staff. The east side, near the Lloyd Expressway retail corridor, and Newburgh in Warrick County have newer small buildings.
| Area | Typical building | What to check |
|---|---|---|
| Haynie's Corner, Riverside | Older brick buildings and conversions | Historic review, building age |
| Near the University of Evansville | Converted houses | Student turnover, parking |
| East side, Newburgh | Newer small buildings | Newer systems, county differences |
Our residential programs cover one to eight units, so a six or eight unit building in Evansville 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.
Indiana caps property tax bills as a percentage of gross assessed value: 1% for homesteads and 2% for most other residential property, including non-homestead rentals. Local levies can push a bill up to the cap but not past it. Confirm the building's classification with the county and use the current assessment.
Indiana does not charge a state real estate transfer tax, though a sales disclosure form is filed at closing. Title, recording and lender costs still apply.
Check with the City of Evansville for code and rental requirements, and confirm the legal unit count, especially for older houses divided into apartments decades ago.
The Riverside Historic District has design guidelines for exterior work, so plan window, porch and siding changes around approvals.
This example is illustrative and not a quote. Picture a 6-unit brick walk-up in Haynie's Corner priced at $400,000. With units averaging $725, the building brings in $4,350 a month. The budget uses $500 a month for taxes and $300 for insurance.
At 75% LTV the loan is $300,000, estimated principal and interest is about $2,098 and the total payment is about $2,898, for a DSCR of about 1.50x. At 70% LTV the loan drops to $280,000, the total payment to about $2,758 and the DSCR rises to about 1.58x. Low prices and capped taxes give room in the ratio at either loan amount.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $300,000 | $280,000 |
| Gross monthly rent | $4,350 | $4,350 |
| Estimated principal and interest | $2,098 | $1,958 |
| Property taxes | $500 | $500 |
| Insurance | $300 | $300 |
| Total monthly payment | $2,898 | $2,758 |
| DSCR | About 1.50x | About 1.58x |
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.
Evansville sits on the Ohio River, and a levee and floodwall system protects much of the city. Some properties outside that system, or along Pigeon Creek, are in mapped flood zones. Check the FEMA map early.
Older buildings often have aging roofs, boilers and wiring that insurers will ask about. Get a real quote for the whole building.
Deaconess Health, Ascension St. Vincent, Berry Global, Toyota's plant in nearby Princeton, the University of Evansville and the University of Southern Indiana support steady rental demand.
Prices are low, so many Evansville five to eight unit buildings trade between $250,000 and $500,000, and the capped tax line helps the ratio clear 1.0x.
Because the market is smaller, comparable small-building sales can be thin. A clean rent roll, signed leases and a recent operating history help the appraisal support both value and rent.
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.
Most non-homestead residential property, including rentals, is capped at 2% of gross assessed value. Confirm the classification with the county.
No. Indiana does not charge a state real estate transfer tax.
Much of the city is behind the levee and floodwall system, but some areas are in mapped flood zones. Check the specific address.
Yes, if the building has 5 to 8 legal units and the rent supports the payment.
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. The loan qualifies on the building's rent. You do not provide W-2s or tax returns.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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