Florida's small apartment buildings are mostly concrete block walk-ups from the 1950s through the 1970s, found from Miami to Jacksonville. Rents are strong, but insurance is the line that decides most Florida 5 to 8 unit files, often more than the rate.
In short: Yes. LendingStreet finances 5 to 8 unit rental buildings in Florida with DSCR loans that qualify on the building's rent, starting at $150,000 with no stated maximum and LLC borrowers standard. Purchases can go up to 80% LTV and cash-out up to 75%, though maximum leverage on 5-8 units varies by program. In Florida, wind and flood insurance, documentary stamp and intangible taxes on the new loan and roof age are the items that most often decide how far a building can be leveraged.
Miami has a large stock of small concrete block apartment buildings in Little Havana, Allapattah, Little River and North Miami, and similar buildings line older streets in Fort Lauderdale and Hollywood. St. Petersburg and Tampa have 1950s and 1960s courtyard buildings near downtown and in Seminole Heights.
Jacksonville has small buildings in Riverside, Springfield and Murray Hill, and Orlando has buildings around downtown and the older parts of Winter Park and College Park. Gainesville and Tallahassee have buildings serving the University of Florida and Florida State.
LendingStreet treats 1 to 8 units as residential, so a five-, six-, seven- or eight-unit building in Florida is underwritten as a rental property rather than a commercial loan. The loan qualifies on the building's rent: total monthly rent divided by the full monthly payment, including principal, interest, taxes, insurance and any association dues.
Standard programs look for 1.0x or better, and sub-1.0 programs exist for buildings that come up a little short. Maximum leverage on 5-8 unit properties is often lower than on a single-family rental and varies by program and loan size.
A 5 to 8 unit building is usually appraised with more weight on the income approach than a house would be. The appraiser compares its rents with similar small buildings nearby and reconciles that with sales comparables. Florida's metros have frequent small apartment sales, but buildings with older roofs or deferred maintenance can be harder to insure and may appraise lower.
Underwriting works from the rent roll and the leases. Expect to provide a current rent roll showing each unit, its rent and lease dates, plus copies of the leases. Vacant units are usually counted at the appraiser's market rent, and some programs use the lower of actual and market rent.
Florida charges documentary stamp tax on deeds, usually paid by the seller, and on new promissory notes, plus an intangible tax on new mortgages. The note-related taxes fall on the borrower and can be a meaningful closing cost on a 5-8 unit purchase.
Property taxes on rentals do not benefit from the homestead exemption or the Save Our Homes cap. When you buy a building, it is reassessed at market value, and non-homestead increases are capped at a different level. Budget taxes at the new value.
Insurance is the biggest variable in Florida. Wind coverage, hurricane deductibles and flood coverage in flood zones can add up to more than the tax bill. Carriers ask about roof age, wind mitigation features and opening protection, and an older roof can limit options.
Get a current whole-building quote, including wind and flood, before you go under contract. A higher premium lowers the ratio dollar for dollar.
This example is illustrative and not a quote. An investor buys a St. Petersburg eight-unit block building for $1,300,000. Each of the 8 units rents for $1,500 a month, for $12,000 in total. Property taxes are budgeted at $24,000 a year and the whole-building insurance quote is $28,000 a year.
At 75% LTV the loan is $975,000, leaving $325,000 down before closing costs. On 30-year amortization, principal and interest is about $6,817 a month. Adding $4,333 for taxes and insurance brings the payment to about $11,151, so the DSCR is about 1.08x, above the 1.0x standard minimum. If the insurance quote came in $500 a month higher, the ratio would fall to about 1.03x, which is why a firm quote matters before you set your offer.
| Item | Amount |
|---|---|
| Purchase price | $1,300,000 |
| Units and gross monthly rent | 8 units, $12,000 |
| Loan at 75% LTV | $975,000 |
| Principal and interest (30-year) | About $6,817 |
| Taxes and insurance per month | About $4,333 |
| Total monthly payment | About $11,151 |
| DSCR | About 1.08x |
Florida's landlord-tenant law sets notice and deposit rules, and state law preempts local rent control. That predictability helps underwriting.
Short-term rentals are regulated locally, and some cities and counties restrict them. If a building will be operated as vacation rentals, check local rules first, and know that some programs can qualify on projected short-term income.
Having these together before you apply keeps the appraisal and underwriting on schedule.
These loans fit investors in Florida who want to qualify on the building's income instead of personal tax returns, hold title in an LLC and finance on a 30-year term. Our investor loans are business-purpose loans on non-owner-occupied property, so a building where you plan to live in one of the units is not eligible.
If the building needs heavy renovation or has several vacant units, a short-term bridge loan and a later refinance into a DSCR loan can be the better path. Buildings with nine or more units are commercial; see our multifamily loans page for those. Call (877) 298-1001 or use the form below to get a quote.
Yes. LendingStreet finances 5 to 8 unit investment buildings in Florida with DSCR loans from $150,000, qualified on the building's rent with LLC borrowers standard.
LendingStreet treats 1 to 8 units as residential, so a 5 to 8 unit building is underwritten as a rental property on its rent. Nine or more units is commercial lending.
Wind and flood premiums in Florida can be very high, and they are part of the DSCR payment. A higher quote can lower the ratio enough to reduce your loan amount.
Generally yes. Rentals do not get the homestead exemption, and the building is reassessed at market value after a sale. Budget taxes from your purchase price.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the building has to be fully used as a rental.
Vacant units are usually counted at the appraiser's market rent, and some programs use the lower of actual and market rent. Several vacancies can reduce the loan amount, and a bridge loan may be the better first step.
Yes, up to 75% LTV on standard programs, often lower on 5-8 units. The rent still has to cover the new payment, and seasoning rules vary by program.
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