Louisiana's small multifamily market is defined by New Orleans shotgun doubles and converted Victorians, plus buildings in Baton Rouge, Lafayette and Shreveport. Insurance is the dominant cost, and the state's civil law system changes how closings work.
In short: Yes. LendingStreet finances 5 to 8 unit rental buildings in Louisiana 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. In Louisiana, wind and flood insurance, parish property taxes and the state's civil law closing process are the items to understand before sizing a 5-8 unit loan.
New Orleans has a large stock of converted Victorians, shotgun doubles combined into larger properties and small apartment buildings in Mid-City, Uptown, the Irish Channel, the Marigny and Bywater. Gentilly and New Orleans East have 1960s and 1970s small buildings at lower prices, and Metairie and the West Bank add more.
Baton Rouge has small buildings near LSU and Southern University and around Mid City. Lafayette near the University of Louisiana, Shreveport and Lake Charles have older small buildings at lower prices, with Lake Charles still showing the effects of the 2020 hurricanes on its stock.
LendingStreet treats 1 to 8 units as residential, so a five-, six-, seven- or eight-unit building in Louisiana 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. New Orleans has small multifamily sales, but flood zone and building condition can drive appraisal differences.
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.
Louisiana property taxes are set by parish, and the homestead exemption applies only to a primary residence, so budget a rental at its full assessment. Parish millages differ widely, so use the actual bill.
Louisiana is a civil law state, and closings are handled through a notary with an act of sale rather than a deed in the common-law sense. Orleans Parish has its own transfer fees. Ask your closing notary for the full list of costs.
Insurance is the biggest variable in Louisiana. Several carriers left the state after recent hurricanes, and many owners have had to place wind coverage with fewer insurers or through the state's insurer of last resort. Expect high premiums and separate named-storm deductibles.
Flood coverage is often required, and federal flood premiums have risen for many properties under newer rating methods. An elevation certificate can help. Get a whole-building quote, including wind and flood, before you go under contract.
This example is illustrative and not a quote. An investor buys a Mid-City New Orleans five-unit building for $850,000. Each of the 5 units rents for $1,650 a month, for $8,250 in total. Property taxes are budgeted at $8,500 a year and the whole-building insurance quote is $21,000 a year.
At 75% LTV the loan is $637,500, leaving $212,500 down before closing costs. On 30-year amortization, principal and interest is about $4,457 a month. Adding $2,458 for taxes and insurance brings the payment to about $6,916, so the DSCR is about 1.19x, above the 1.0x standard minimum. If the insurance quote came in $400 a month higher, the ratio would fall to about 1.13x, which is why a firm quote matters before you set your offer.
| Item | Amount |
|---|---|
| Purchase price | $850,000 |
| Units and gross monthly rent | 5 units, $8,250 |
| Loan at 75% LTV | $637,500 |
| Principal and interest (30-year) | About $4,457 |
| Taxes and insurance per month | About $2,458 |
| Total monthly payment | About $6,916 |
| DSCR | About 1.19x |
Louisiana's landlord-tenant rules come from its civil code and related statutes, and there is no rent control in the state. Notices and deposit returns still have to follow state law.
New Orleans has strict short-term rental rules, with permits, limits in residential areas and owner-presence requirements in many zones, so a building bought for nightly rentals may not be allowed to operate that way. Check city rules first.
Having these together before you apply keeps the appraisal and underwriting on schedule.
These loans fit investors in Louisiana 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 Louisiana 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.
Hurricane exposure has driven many carriers out, and wind and flood premiums are high. They go into the DSCR payment.
Louisiana uses a civil law system, and closings are handled by a notary through an act of sale.
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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