Many of Huntington's big early 1900s homes near Marshall and downtown were long ago split into five, six or more apartments. They remain one of the most common investment properties in the city, and one of the trickiest to finance with standard loans.
In short: LendingStreet finances 5 to 8 unit residential buildings in Huntington with DSCR loans that qualify on the rent roll, with no W-2s or tax returns. Loans start at $150,000 with no stated maximum, and the standard minimum DSCR is 1.0x. Maximum LTV on 5-8 unit properties can be lower than on smaller rentals and varies by program.
Converted houses near campus, many with units on each floor and in the attic or basement, make up a large share of the city's small apartment buildings. There are also brick walk-ups from the early twentieth century and a smaller number of newer buildings in the suburbs. Each type underwrites differently, mainly because of condition, unit size and tenant base.
Some of these buildings sit on Fifth and Sixth avenues and the side streets between campus and downtown. Others are scattered through Southside and the West End, where tenants are more often working adults than students.
Buildings in this size range trade less often than single-family homes, so knowing the local stock helps. Investors who already own duplexes and fourplexes near Marshall often move up to a five- or six-unit building when one comes available.
Most residential programs stop at four units, and many commercial lenders prefer bigger buildings. Our 5-8 unit DSCR program treats these buildings as residential investments, using the rent roll and the same basic DSCR structure as smaller rentals, with 30-year terms available. Buildings with 9 or more units are commercial and covered on our multifamily page.
That structure suits investors who plan to hold a building for years. Commercial loans often have shorter terms and require full financial statements, while a DSCR loan focuses on whether the building's rent covers its payment.
This example is illustrative and not a quote. An investor buys a five-unit converted house near campus for $375,000. Each unit rents for $760, for $3,800 a month. Taxes are budgeted at $470 and insurance at $280 a month.
At 75% LTV the loan is $281,250 and the full payment is about $2,717, for a DSCR of about 1.40x. If the program caps the building at 70% LTV, the loan is $262,500, the payment about $2,585 and DSCR about 1.47x.
Notice that even the lower-leverage option clears 1.0x comfortably. That cushion is useful in older buildings, where an unexpected repair or a vacant unit over the summer can cut into cash flow.
| 75% LTV | 70% LTV | |
|---|---|---|
| Loan | $281,250 | $262,500 |
| Monthly payment | $2,717 | $2,585 |
| DSCR | 1.40x | 1.47x |
Buildings near Marshall often lease to students for an August start, sometimes by the bedroom. Buildings near the hospitals lease more to residents and staff on standard one-year terms. Both work for a DSCR loan, but the rent roll needs to be current, with leases for every occupied unit. Vacant units lower the DSCR unless leases are signed.
If units are leased by the bedroom, the rent roll should show each tenant and how rent adds up per unit. That makes it easier to compare with market rent and avoids questions during underwriting.
Converted buildings must meet code for the number of units they contain.
Inside Huntington, a rental building is taxed in Class IV at a 60% assessment ratio, with a higher levy than owner-occupied homes. Insurance on older frame buildings with several units can be costly, and flood zones near the Guyandotte River and local creeks add another cost. Get quotes before you finalize your offer.
Ask the seller for two years of tax bills, insurance declarations and utility costs. Owner-paid utilities are common in converted houses, and they can take a big bite out of cash flow even though they are not part of the DSCR formula.
A building with several empty units may not qualify for a DSCR loan right away. A bridge loan can fund the purchase and repairs, and a DSCR refinance follows once the building is leased. Time the purchase so units are ready for the August student lease-up or for hospital staff turnover.
Start lining up repairs in spring if the building leases to students, so units are ready to show before the fall semester leasing push.
Plan the refinance numbers before you buy. Estimate the rent each unit will bring once repaired, budget taxes at the Class IV levy and get an insurance quote, so you know the building will clear 1.0x when it is time to move off the bridge loan.
Student buildings need hands-on management: showings in the spring, move-in and move-out each summer, security deposits, noise complaints and repairs. Many owners hire a local property manager who specializes in student housing. Lenders like to see a clear management plan, especially on buildings with several units.
Check whether Huntington requires rental registration or inspections, and keep records of any code enforcement visits. A well-documented building is easier to finance, refinance and eventually sell.
Send the address, price, rent roll, leases, two years of expenses if available, insurance quote and photos. We will tell you the likely loan amount and DSCR.
Yes. LendingStreet makes DSCR loans on 5 to 8 unit residential buildings in Huntington and nearby towns. Converted houses and walk-ups both qualify.
It varies by program and can be lower than on 1-4 unit rentals. Larger balances can lower it further.
Yes, if the unit count is legal and the building meets code. Basement and attic units need proper egress.
Yes. Rent from each bedroom lease is added together for the unit. A current rent roll shows how they add up.
No. The loan qualifies on the building's rent roll. Leases and the appraisal confirm the rent.
Buildings with 9 or more units are commercial. See our multifamily page.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.