Small apartment buildings on the Coast are scarce, and the ones that trade are often older, two-story and close to a base or a hospital. The rent is usually there; the insurance and the roof decide the deal.
In short: LendingStreet finances 5-8 unit residential buildings in Gulfport, Biloxi and along the Mississippi Coast with DSCR loans qualified on the combined rent of all units. Loans start at $150,000 with no stated maximum, there are no W-2s or tax returns, and LLC borrowers are standard. Maximum LTV on 5-8 unit properties varies by program and can be lower than on 1-4 units.
Most small buildings in the area are 1960s to 1980s garden-style or two-story walk-ups, plus a few newer buildings put up after 2005. They cluster near Keesler Air Force Base in Biloxi, around Memorial Hospital and the older parts of central Gulfport, and along corridors like Pass Road. Units are usually one and two bedrooms rented to service members, hospital staff and casino and port workers.
Because fewer of these buildings exist than single-family rentals, pricing depends heavily on condition and insurance history. Two six-unit buildings a mile apart can trade at very different prices if one has a new roof and the other has storm history. Buyers who get insurance quotes early tend to price these buildings more accurately than those who wait until after the inspection.
Some investors also find 5-8 unit properties in the form of several small buildings on one parcel, such as a pair of fourplexes or a row of cottages on a single lot. If they sit on one tax parcel and one title, they can often be financed together as a single 5-8 unit property. Ask early so the appraisal is ordered correctly.
Mixed-use buildings with a storefront are a different case and usually fall under commercial lending.
Buildings with 5 to 8 units are still residential for our programs, so they qualify on rent like a single-family rental, without the full commercial process. Leverage, reserves and appraisal requirements can differ from 1-4 unit loans, and they vary by program. Nine units and up is commercial lending; see our multifamily page if your building is larger.
This example is illustrative and not a quote. An investor buys a six-unit building near Keesler for $540,000. Each unit rents for $975, for $5,850 a month. Taxes are budgeted at $560 a month and the building's insurance, including wind, is $900.
At 75% LTV, if the program allows it, the loan is $405,000, estimated principal and interest is about $2,832, the total payment is about $4,292 and DSCR is about 1.36x. At 70% LTV the loan is $378,000 and DSCR rises to about 1.43x. Either clears 1.0x, but the cushion matters on a building where one vacancy is a sixth of the income.
| LTV | Loan | Est. principal and interest | Taxes | Insurance | Total payment | DSCR |
|---|---|---|---|---|---|---|
| 75% | $405,000 | $2,832 | $560 | $900 | $4,292 | 1.36x |
| 70% | $378,000 | $2,643 | $560 | $900 | $4,103 | 1.43x |
Insurance for a 5-8 unit building is often written as a commercial property policy, and on the Coast the wind portion can be the largest single expense after the mortgage. Carriers look at roof age, construction type and distance to the water. Some buildings place wind through the state wind pool.
Get a quote before you offer and ask for the deductible structure. If the building is in a flood zone, flood coverage is generally required and can be significant for older ground-level units.
Small apartment buildings are assessed as non-homestead property at Mississippi's 15% assessment ratio. Budget on your purchase price, not the seller's assessed value, and confirm with the county. Landlord-paid water and sewer, common-area electric and lawn care add to expenses even though they are not part of the DSCR payment; leave room for them.
Many Coast buildings have below-market rents or a few units offline. A bridge or fix and flip loan can fund the turn, followed by a DSCR refinance on the stabilized rent. Our Gulfport bridge page shows a fourplex version of that plan.
Most investors in 5-8 unit buildings either self-manage nearby or hire a local manager who already handles military and hospital tenants. Turnover tends to follow assignment cycles at Keesler and the Seabee base, so plan make-ready budgets for summer.
Storm preparation is part of the job: shutters or impact windows, tree trimming, and a plan for securing the property and documenting condition before and after a storm. Lenders and insurers both like to see an organized maintenance history.
Keep separate records for each unit and keep security deposits in order. When you refinance later, a clean rent roll with consistent payment history supports the full income.
Building systems deserve a close look too. Older Coast buildings may have original electrical panels, galvanized plumbing or window air conditioners in each unit. None of those stop a loan, but they affect insurance, tenant turnover and your repair budget. Price replacements into your offer and keep a reserve for the first year.
Send the address, price, rent roll and insurance quote through the form below or call (877) 298-1001. Our investor loans are business-purpose loans on non-owner-occupied property. Statewide details are on our Mississippi 5-8 unit page.
For our programs, 5-8 unit buildings are residential and qualify on rent. Nine units and up is commercial.
Maximum LTV varies by program and is often lower than on 1-4 units. Loans start at $150,000 with no stated maximum.
Yes. Leases in place, checked against the appraiser's market rent, set the qualifying income.
Not by itself, but a high premium lowers DSCR. Roof age, wind mitigation and flood zone drive the quote.
Yes, though a bridge loan can make more sense if several units need work before they can be leased.
Yes. We lend on 5-8 unit buildings across Harrison and Jackson counties.
Yes. LLC borrowers are standard, and you sign for the loan personally.
Flood insurance is generally required and becomes part of the DSCR payment. Ground-level units in older buildings can carry higher premiums, so get a quote early.
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