Georgia's 5 to 8 unit buildings are concentrated in Atlanta's older neighborhoods and in Savannah's historic districts, with smaller pockets in Augusta, Macon and Athens. The state is landlord-friendly and costs are moderate, which makes the rent roll the main event.
In short: Yes. LendingStreet finances 5 to 8 unit rental buildings in Georgia 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. Georgia's transfer tax and intangible recording tax are modest, and there is no rent control, so the rent roll, insurance and property taxes after a sale usually decide the ratio.
Atlanta has small brick apartment buildings and quadplex clusters in Midtown, Virginia-Highland, Grant Park, Kirkwood, East Atlanta and the West End, many from the 1920s through the 1960s. Decatur and the close-in suburbs add small buildings at different price levels.
Savannah's historic district and surrounding neighborhoods have converted houses with five or six units. Augusta, Macon and Athens near the University of Georgia have older small buildings at lower prices.
LendingStreet treats 1 to 8 units as residential, so a five-, six-, seven- or eight-unit building in Georgia 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. Atlanta has a deep small multifamily market, though appraisers may adjust for renovation level and parking, which vary widely between buildings.
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.
Georgia charges a transfer tax on deeds, usually paid by the seller, and an intangible recording tax on long-term notes secured by real estate, which falls on the borrower. Both are modest compared with many states, and your closing attorney will calculate them.
Georgia property taxes are moderate. Homestead exemptions apply only to a primary residence, so budget the rental building's taxes at the full assessment. Fulton and DeKalb counties often reassess after a sale.
Inland Georgia sees wind, hail and occasional tornado claims. Coastal Savannah and the barrier islands have hurricane and flood exposure, with wind deductibles and flood coverage in flood zones.
Older Atlanta buildings may draw questions about wiring and plumbing. A whole-building quote is the number to use.
This example is illustrative and not a quote. An investor buys an Atlanta six-unit brick building for $900,000. Each of the 6 units rents for $1,450 a month, for $8,700 in total. Property taxes are budgeted at $11,000 a year and the whole-building insurance quote is $8,500 a year.
At 75% LTV the loan is $675,000, leaving $225,000 down before closing costs. On 30-year amortization, principal and interest is about $4,720 a month. Adding $1,625 for taxes and insurance brings the payment to about $6,345, so the DSCR is about 1.37x, above the 1.0x standard minimum. If taxes came in $2,500 a year higher after reassessment, the ratio would fall to about 1.33x.
| Item | Amount |
|---|---|
| Purchase price | $900,000 |
| Units and gross monthly rent | 6 units, $8,700 |
| Loan at 75% LTV | $675,000 |
| Principal and interest (30-year) | About $4,720 |
| Taxes and insurance per month | About $1,625 |
| Total monthly payment | About $6,345 |
| DSCR | About 1.37x |
Georgia's landlord-tenant law is considered landlord-friendly, and the state preempts local rent control. Notices and deposits still have to follow state law.
Savannah regulates short-term rentals with permits and limits in many residential areas, and Atlanta requires STR licenses. Check local rules before you rely on nightly income.
Having these together before you apply keeps the appraisal and underwriting on schedule.
These loans fit investors in Georgia 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 Georgia 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.
Yes. Georgia's intangible recording tax applies to long-term notes secured by real estate in the state. It is modest, and your closing attorney will include it in the closing figures.
Yes, if it is 5 to 8 units of investment property. Historic district rules may affect renovations and exterior changes, so factor those into your plans.
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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