Las Vegas pairs low property taxes with no state income tax, which helps the DSCR math on small apartment buildings. The flip side is a hot desert climate that puts real wear on roofs and air conditioning.
In short: LendingStreet finances 5 to 8 unit rental buildings across Las Vegas, Henderson, North Las Vegas and the rest of Clark County with DSCR loans that qualify on rent, with no W-2s or tax returns. Loans start at $150,000 with no stated maximum and a 1.0x standard minimum DSCR. Nevada caps annual property tax increases, but rentals can face a higher cap than owner-occupied homes, so check the abatement on each parcel.
Most small apartment buildings in the valley date from the 1960s through the 1980s. They cluster east of the Strip, near UNLV, in the Huntridge and downtown areas, along Maryland Parkway and Charleston Boulevard, and in older parts of North Las Vegas. Many are two-story stucco buildings with carports.
Spring Valley and parts of Paradise also have small buildings closer to the Strip workforce. Henderson and Summerlin have few 5-8 unit buildings; their rental stock is mostly single-family homes and large complexes.
| Area | Typical stock | Tenant base |
|---|---|---|
| East of the Strip and near UNLV | 1960s-1980s two-story buildings | Hospitality workers, students |
| Downtown and Huntridge | Older small buildings | Downtown workers, young renters |
| North Las Vegas | Mixed older stock | Workforce, logistics jobs |
| Spring Valley and Paradise | Small buildings near the Strip | Casino and service workers |
Nevada assesses property at 35% of taxable value and limits annual tax increases through abatements. A primary residence gets the lower cap, generally 3%. Many rental properties fall under a higher cap of up to 8% a year, though some qualifying rentals with rents at or below set levels can claim the lower cap. Check the Clark County assessor record for the abatement that applies.
Because of the caps, tax bills on older buildings can be well below what a new appraisal would suggest. Bills are still low by national standards, which gives Las Vegas buildings more room in the ratio than similar buildings in Texas or Florida.
Clark County charges a real property transfer tax at closing, customarily paid by the seller.
This example is illustrative and not a quote. An investor buys an eight-unit 1970s building near Maryland Parkway and UNLV for $1,280,000. Rents average $1,250 per unit across all 8 units, for $10,000 of gross monthly rent. The budget carries $520 a month for taxes and $380 for insurance.
With a 75% LTV loan of $960,000, estimated principal and interest runs about $6,712 and the total payment about $7,612, which puts DSCR near 1.31x. Cutting leverage to 70% LTV, a $896,000 loan, lowers the payment to about $7,165 and lifts DSCR to about 1.40x, at the cost of $64,000 more down.
Low taxes and insurance give this building a healthy ratio at 75% LTV. Air conditioning replacement is the main capital cost to reserve for, even though it does not enter the DSCR formula.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Purchase price | $1,280,000 | $1,280,000 |
| Loan amount | $960,000 | $896,000 |
| Down payment | $320,000 | $384,000 |
| Estimated principal and interest | $6,712 | $6,265 |
| Property taxes (monthly) | $520 | $520 |
| Insurance (monthly) | $380 | $380 |
| Total monthly payment | $7,612 | $7,165 |
| Gross monthly rent | $10,000 | $10,000 |
| DSCR | About 1.31x | About 1.40x |
Summer temperatures above 110 degrees put heavy demand on air conditioning. Many older buildings have rooftop or wall units well past their service life. Ask for HVAC ages and service records, and budget reserves for replacement.
Flat and low-slope roofs common on older stucco buildings need regular maintenance. Insurance is generally more affordable than in coastal states, but carriers still price roof age and condition.
Much of the valley's rental demand comes from casino, hotel and convention workers, along with growing logistics, health care and construction employment. Demand recovered after past downturns but can swing with tourism, so buildings close to job centers tend to hold occupancy better.
Nevada's eviction process moves faster than in many states, but tenant protections have been added in recent years. Use a local manager who follows current rules.
The City of Las Vegas, Henderson, North Las Vegas and unincorporated Clark County each have their own business license and code rules for rentals. Short-term rentals face tight restrictions in most of the valley, so most 5-8 unit buildings are underwritten on 12-month leases.
Water conservation rules limit grass and landscaping. Desert landscaping lowers water bills and maintenance.
A five to eight unit rental in Las Vegas qualifies the same basic way as a duplex: the combined rent of every unit has to cover the full monthly payment. Lenders look at the rent roll, current leases and the appraiser's market rents, and use the lower figure where they differ. Your W-2s and tax returns stay out of it.
You can borrow from $150,000 with no stated maximum, up to 80% LTV to buy and up to 75% LTV on a cash-out refinance, though 5-8 unit properties often top out lower depending on the program. The standard minimum ratio is 1.0x with a 620 credit score floor, LLC ownership is normal, and 30-year terms are available. Buildings just below 1.0x can be reviewed for a sub-1.0 program.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price or estimated value, the rent roll and your target leverage through the form below, or call (877) 298-1001. For the statewide view, see our Nevada 5-8 unit DSCR page. Buildings with nine or more units move to commercial financing on our multifamily loans page.
Some do. Primary residences and certain qualifying low-rent rentals get the lower cap; many rentals face a cap of up to 8% a year. Check the assessor record.
No. They are low by national standards, which helps the DSCR on small buildings.
Rarely. STRs are tightly restricted in most of the valley. Most small buildings are underwritten on long-term leases.
Usually air conditioning and roofs, both worn hard by the desert heat.
Henderson has few of them. Most small buildings are east of the Strip, near UNLV, downtown and in North Las Vegas.
No. The loan qualifies on the building's rent, not your personal income, so W-2s and tax returns are not required. A 620 minimum credit score applies.
Yes, up to 75% LTV on a cash-out refinance, often lower on 5-8 units. Seasoning requirements vary by program, and the rent must still cover the new payment.
Not with our DSCR program. Properties with 1 to 8 units are financed as residential investment property, qualified on rent. Nine units and up is commercial.
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