Fort Worth's small apartment buildings sit in the Near Southside, Fairmount, Ryan Place and the TCU area, with more in Arlington Heights, Riverside and nearby cities like Haltom City. The Tarrant County tax bill after a sale decides most files.
In short: Yes, LendingStreet finances 5 to 8 unit rental buildings in Fort Worth 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 Worth, the key items are Tarrant County taxes after a sale, hail-driven insurance and the city's zoning limits on short-term rentals.
Fairmount, one of the largest historic districts in the Southwest, and Ryan Place and Mistletoe Heights have older brick buildings and houses divided into apartments near the Near Southside and the medical district.
The Berry and University area around TCU has small buildings leased to students. Arlington Heights, Riverside and Rosemont add more older stock, while Haltom City, Arlington and Hurst-Euless-Bedford have 1960s to 1980s small buildings at lower prices.
| Area | Typical building | What to check |
|---|---|---|
| Fairmount, Ryan Place, Near Southside | Older brick buildings and conversions | Historic review, tax after sale |
| Berry and University, near TCU | Small buildings | Student turnover, parking |
| Haltom City, Arlington, HEB | 1960s-80s small buildings | Updated systems, separate city rules |
A building with five to eight units is still residential for our programs; nine or more units moves to commercial or multifamily financing. The loan qualifies on the debt service coverage ratio: the combined rent of every unit divided by the monthly payment of principal, interest, taxes, insurance and any HOA dues.
DSCR loans start at $150,000 with no stated maximum, the standard minimum DSCR is 1.0x and the minimum credit score is 620. You do not provide W-2s or tax returns, LLC borrowers are standard and 30-year terms are available. Maximum LTV on 5-8 unit buildings can be lower than on a single-family home or duplex, so leverage varies by program.
If you are coming from fourplexes, expect the same core process with more paperwork: a full rent roll, leases for every occupied unit and an insurance policy that covers the whole building. If your plan is to buy several smaller buildings instead, a blanket portfolio loan can combine five or more rentals under one loan.
Texas has no state income tax and relies on property taxes, and investors do not get homestead exemptions. The Tarrant Appraisal District often revalues after a sale, so budget on your purchase price at the full combined county, city, school and hospital district rate. A temporary 20% annual cap on increases for non-homestead property under about $5 million was adopted in 2023; confirm its status when you buy.
Texas does not charge a state transfer tax or mortgage tax.
Fort Worth has generally not allowed short-term rentals in one- and two-family residential zoning, and the rules have been revisited over time. Five to eight unit buildings are typically underwritten on 12-month leases.
Fairmount and other historic districts have design review for exterior work. Check for open code cases and confirm the legal unit count.
This example is illustrative and not a quote. An investor buys a 6-unit brick building in Fairmount for $850,000. The units average $1,300 a month, so gross rent is $7,800. Taxes are budgeted at $1,560 a month and insurance at $480.
At 75% LTV the loan is $637,500, estimated principal and interest is about $4,457 and the total payment is about $6,497, for a DSCR of about 1.20x. At 70% LTV the loan drops to $595,000, the total payment to about $6,200 and the DSCR rises to about 1.26x. The Texas tax bill is the biggest cost after principal and interest, so budget it on the purchase price.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $637,500 | $595,000 |
| Gross monthly rent | $7,800 | $7,800 |
| Estimated principal and interest | $4,457 | $4,160 |
| Property taxes | $1,560 | $1,560 |
| Insurance | $480 | $480 |
| Total monthly payment | $6,497 | $6,200 |
| DSCR | About 1.20x | About 1.26x |
With six or eight tenants, small gaps add up. One unit leased below market, another sitting vacant and a third on a month-to-month arrangement can pull the qualifying rent down by several hundred dollars a month.
The appraisal on a building this size typically weighs comparable sales and the building's income. Bring current leases for every occupied unit and a realistic market rent for any vacant one, and the ratio you calculate will be much closer to the one underwriting uses.
North Texas is one of the most hail-prone areas in the country, and insurers often use percentage-based wind and hail deductibles. Older roofs can raise premiums or limit carriers.
Clay soils cause foundation movement, and some areas near the Trinity River and its forks are in mapped flood zones. Ask about foundation repairs and check the FEMA map.
Lockheed Martin, Naval Air Station Joint Reserve Base Fort Worth, American Airlines, the AllianceTexas area, Cook Children's, JPS Health, Texas Health Resources and TCU support rental demand.
New apartment supply on the north side and near downtown has added competition, so use rents supported by current leases.
Underwriting goes faster when the rent and expenses are documented up front. Gather the following, then get a quote through the form below or by phone at (877) 298-1001.
LendingStreet is an investment property financing company. Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, unit mix, rent roll and price, and we will run the ratio at a few loan amounts and come back with options, including sub-1.0 DSCR programs where they fit.
Investors do not get homestead exemptions, and a sale often triggers a revaluation by the Tarrant Appraisal District.
Fort Worth has generally limited STRs in one- and two-family zoning. Most small buildings are underwritten on long-term leases.
Yes, if the building has 5 to 8 legal units and the rent supports the payment.
The premium goes into the payment. The deductible does not, but it affects your real costs after a storm.
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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