Kansas City has a building type of its own: the colonnaded apartment building, a brick walk-up with stacked front porches held up by columns. Built in large numbers in the early 1900s, many have six to eight units and sit in Midtown, Westport and Valentine.
In short: LendingStreet finances 5 to 8 unit rental buildings in Kansas City, Missouri, including colonnade buildings, with DSCR loans that qualify on the building's rent. No W-2s or tax returns are needed, LLC borrowers are standard and loans start at $150,000 with no stated maximum. In Kansas City, check the Healthy Homes rental permit, the latest Jackson County assessment and the insurance quote.
Midtown neighborhoods such as Valentine, Hyde Park, Volker and Old Hyde Park have many colonnaded brick buildings and other walk-ups near Westport, the Plaza and the University of Missouri-Kansas City. The Northeast, including Pendleton Heights, has older brick buildings at lower prices.
Brookside and Waldo have smaller numbers of apartment buildings at higher prices, while the Crossroads and downtown have mostly larger buildings and lofts.
This page covers Kansas City, Missouri. The Kansas side is a separate state with its own laws.
| Area | Typical 5-8 unit stock | What to check |
|---|---|---|
| Valentine, Hyde Park, Volker | Colonnaded brick walk-ups | Porch structure, roofs |
| Westport, Plaza area | Walk-ups near shopping and UMKC | Higher prices, parking |
| Northeast, Pendleton Heights | Older brick buildings | Condition, rehab quality |
| Brookside, Waldo | Smaller apartment buildings | Prices vs rents |
Every unit's rent goes into one number, and that number is compared with the full payment, including taxes and insurance. If the rent covers the payment at 1.0x or better, the building clears the standard minimum. If it does not, a lower loan amount, a sub-1.0 program or a rent increase at turnover can close the gap.
Our programs treat buildings of 1 to 8 units as residential, so a five, six, seven or eight unit building qualifies the same way a single-family rental does: on rent, with no personal income documents. Maximum leverage is where 5-8 units differ. Purchase LTV can reach 80% on some programs but is often lower here and varies by program; cash-out goes up to 75%. Loans start at $150,000 with no stated maximum, terms run up to 30 years and the minimum score is 620. At nine units, the deal moves to commercial financing.
Kansas City rents are moderate, and many buildings cover the payment comfortably. We underwrite actual leases and a market rent estimate for vacant units.
Jackson County's recent reassessments raised values sharply across much of Kansas City, and many owners appealed. A seller's older bill can understate what you will pay, so check the current assessed value and budget on it.
Missouri is one of the few states with no real estate transfer tax, which keeps closing costs lower than in most of the country. Buyers pay title, recording and closing fees plus prepaid taxes and insurance. Missouri law also blocks cities from adopting rent control.
Kansas City requires a rental permit under its Healthy Homes program, with inspections that focus on health and safety issues. Units must be registered, and tenants can request inspections. Ask the seller for permit status and any inspection history.
Kansas City has also adopted a tenant bill of rights covering notices, privacy and retaliation. Keep leases and notices current with city rules.
Several Midtown neighborhoods include historic districts or buildings listed on historic registers, which can affect exterior work.
This example is illustrative and not a quote. An investor buys a 6-unit colonnaded building in Valentine for $780,000. The units rent for about $1,250 each, or $7,500 a month. Taxes are budgeted at $900 a month on the current assessment and insurance at $650, reflecting hail exposure.
At 75% LTV, the loan is $585,000. On a 30-year fixed, principal and interest is about $4,090, the full payment with taxes and insurance is about $5,640, and DSCR is about 1.33x. At 70% LTV, the loan is $546,000, principal and interest is about $3,818, the payment is about $5,368 and DSCR is about 1.40x.
Both loans clear 1.0x. With no transfer tax, closing costs are lighter than in many states. The 70% loan needs about $39,000 more at closing.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Gross monthly rent | $7,500 | $7,500 |
| Loan amount | $585,000 | $546,000 |
| Principal and interest | $4,090 | $3,818 |
| Property taxes | $900 | $900 |
| Insurance | $650 | $650 |
| Total monthly payment | $5,640 | $5,368 |
| DSCR | About 1.33x | About 1.40x |
Colonnade buildings depend on their stacked front porches and columns, which need regular maintenance. Kansas City sees hail and severe storms, which affects roofs and insurance.
The items below cover most of what we ask for on a building this size.
We lend on 5-8 unit rentals across Kansas City, Missouri and the surrounding Missouri counties. Our investor loans are business-purpose loans on non-owner-occupied property.
Get a quote through the form below or call (877) 298-1001. Share the rent roll, the price or current value and your target loan amount, and we will run the ratio at a few loan sizes on realistic tax and insurance numbers. If the building is not yet stabilized, ask about bridge financing with a planned refinance into a DSCR loan.
A brick apartment building with stacked front porches supported by columns, common in Midtown. Most have six to eight units, which is a residential DSCR loan with us.
Yes. Kansas City requires a Healthy Homes rental permit, with health and safety inspections.
This page covers Kansas City, Missouri. Ask us about Kansas properties; the state laws and closing costs differ.
Residential. We treat buildings of 1 to 8 units as residential and finance them with DSCR loans that qualify on rent. Buildings with nine or more units move to commercial multifamily financing.
At least 20%, and often more. Purchases go up to 80% LTV on some programs, but maximum leverage on 5-8 units is often lower and varies by program, loan size and the building's ratio.
Yes. LLC borrowers are standard on our DSCR loans. The members usually sign for the loan personally, and we will ask for the LLC's formation documents and operating agreement.
Yes. DSCR cash-out refinances go up to 75% LTV, often lower on 5-8 units, and the rent must still cover the new, larger payment. Seasoning requirements vary by program.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the building you finance with us cannot be your home.
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