Fort Myers and Cape Coral have small concrete block apartment buildings from the 1950s to the 1980s, many repaired or rebuilt after Hurricane Ian in 2022 and the 2024 storms. Insurance and the FEMA 50% rule decide most five to eight unit files here.
In short: Yes, LendingStreet finances 5 to 8 unit rental buildings in Fort Myers 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 Fort Myers, wind and flood insurance, the FEMA substantial improvement rule and Florida's doc stamp and intangible taxes are the items to understand first.
Older Fort Myers neighborhoods near McGregor Boulevard, Dunbar and the downtown River District have concrete block (CBS) buildings from the 1950s through the 1970s, often with five to eight units around a courtyard or parking area.
Cape Coral has small buildings near canals, some with seawalls and docks. Lehigh Acres, inland, has newer and lower-priced buildings, and North Fort Myers adds more options across the Caloosahatchee.
| Area | Typical building | What to check |
|---|---|---|
| McGregor, Dunbar, River District | 1950s-70s concrete block buildings | Flood zone, storm repairs, roof age |
| Cape Coral | Small buildings near canals | Flood insurance, seawall condition |
| Lehigh Acres, North Fort Myers | Newer and inland buildings | Lower prices, drainage |
Our residential programs cover one to eight units, so a six or eight unit building in Fort Myers 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.
Florida's homestead exemption and Save Our Homes cap apply only to a primary residence. Non-homestead property gets a 10% cap on annual assessment increases, excluding school taxes, but a sale resets the value to market. Budget on your purchase price, not the seller's bill.
Florida charges documentary stamp tax on deeds, $0.70 per $100 of value, usually paid by the seller, plus doc stamps on the new note of $0.35 per $100 and an intangible tax of 0.2% of the loan amount, which the borrower pays.
In flood zones, Lee County, Fort Myers and Cape Coral enforce the FEMA substantial improvement rule. If repair or improvement costs reach 50% of the building's value, the building must be brought up to current flood standards, which can mean elevating it. After Ian, this rule affected many older buildings.
Ask the seller for permits and repair records from recent storms, and check whether the building is close to the 50% threshold before you plan a renovation.
This example is illustrative and not a quote. Picture a 6-unit concrete block building in the McGregor corridor priced at $900,000. With units averaging $1,400, the building brings in $8,400 a month. The budget uses $1,000 a month for taxes and $1,000 for insurance.
At 75% LTV the loan is $675,000, estimated principal and interest is about $4,720 and the total payment is about $6,720, for a DSCR of about 1.25x. At 70% LTV the loan drops to $630,000, the total payment to about $6,405 and the DSCR rises to about 1.31x. Insurance is as large as the tax line here, which is common for older buildings near the river.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $675,000 | $630,000 |
| Gross monthly rent | $8,400 | $8,400 |
| Estimated principal and interest | $4,720 | $4,405 |
| Property taxes | $1,000 | $1,000 |
| Insurance | $1,000 | $1,000 |
| Total monthly payment | $6,720 | $6,405 |
| DSCR | About 1.25x | About 1.31x |
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.
Wind and flood coverage are usually the largest costs after principal and interest. Concrete block construction, newer roofs, impact windows or shutters and a wind mitigation inspection can lower the wind premium.
Much of coastal Lee County is in mapped flood zones, and flood coverage is required there. Get the full insurance quote and an elevation certificate if available early.
Lee Health, Florida Gulf Coast University, tourism and construction support rental demand, and the area's population growth has continued since Ian.
Insurance makes ratios tight, so many buyers bring a larger down payment or focus on inland buildings in Lehigh Acres and North Fort Myers where premiums run lower.
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.
In flood zones, if improvements or repairs reach 50% of the building's value, the building must meet current flood standards, which can mean elevation.
Doc stamps on the note at $0.35 per $100 and an intangible tax of 0.2% of the loan amount. The seller usually pays doc stamps on the deed.
Yes, if the building has 5 to 8 legal units and the rent supports the payment, including insurance.
Often. A newer roof and wind mitigation features can lower the wind premium, which improves the ratio.
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.
Yes. LLC borrowers are standard on our DSCR programs, and you sign for the loan personally.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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