Minneapolis has a deep stock of 1910s and 1920s brick walk-ups in Whittier, Stevens Square, Lyn-Lake and Uptown. They rent to a steady base of students and young professionals, and Minnesota's rules are simpler than St. Paul's next door.
In short: LendingStreet finances 5 to 8 unit rental buildings in Minneapolis with DSCR loans that qualify on the building's rent, with no W-2s or tax returns and LLC borrowers standard. Loans start at $150,000 with no stated maximum and the standard minimum DSCR is 1.0x. In Minneapolis, check the city rental license, budget for Minnesota's mortgage registry tax and plan for winter wear on older buildings.
Whittier, Stevens Square and Loring Park have many brick walk-ups from the early 1900s, often with six to eight units, close to downtown. Lyn-Lake, Uptown and the Wedge have similar buildings near the lakes. Marcy-Holmes, Dinkytown and Prospect Park rent heavily to University of Minnesota students.
Powderhorn, Longfellow, Seward and Northeast have small buildings mixed with duplexes and triplexes. The city's 2040 plan allowed up to three units on lots once limited to single-family homes, adding new small buildings over time.
Most of the older stock has steam or hot water heat and limited parking.
| Area | Typical 5-8 unit stock | What to check |
|---|---|---|
| Whittier, Stevens Square, Loring Park | Brick walk-ups | Boilers, parking |
| Lyn-Lake, Uptown, the Wedge | Walk-ups near the lakes | Prices vs rents |
| Marcy-Holmes, Dinkytown | Student buildings near the U | Lease cycle, wear |
| Northeast, Seward, Longfellow | Small buildings and conversions | Rental license tier |
On a DSCR loan, the building qualifies itself. The rent from all units is divided by the monthly payment, which includes principal, interest, property taxes, insurance and any dues. A ratio of 1.0x is the standard minimum, and some programs go below 1.0x for buildings that are close.
A 5-8 unit building is still a residential loan for us, with an LLC borrower, no W-2s or tax returns and a 620 minimum credit score. Leverage varies by program: up to 80% LTV on purchases on some programs, often less on 5-8 units and bigger balances, and up to 75% on a cash-out refinance. Loans start at $150,000 with no stated maximum and 30-year terms are available. Buildings with nine or more units are financed as commercial multifamily.
Minneapolis added a lot of new apartment supply in recent years, which has kept rent growth moderate. We underwrite actual leases, not projected increases.
Minnesota charges a mortgage registry tax on the loan amount, paid by the borrower, and a deed tax on the sale, customarily paid by the seller. The registry tax is a fraction of a percent of the loan but adds to cash at closing.
Minnesota classifies rental property separately from homesteads, and rentals pay at higher class rates. Use the current bill for the building's rental classification.
Minneapolis requires a rental license for every rental unit, with inspections and license tiers based on property condition and history. A building with a poor tier faces more frequent inspections and higher fees. Ask the seller for license status.
Minneapolis voters authorized the city to adopt rent control in 2021, but the city has not enacted it. St. Paul, by contrast, has rent stabilization. A building on the St. Paul side of the line works very differently.
Minnesota and Minneapolis have tenant protections on notices, screening and deposits. Keep leases current.
This example is illustrative and not a quote. An investor buys an 8-unit 1920s brick walk-up in Whittier for $1,100,000. The units rent for about $1,250 each, or $10,000 a month. Taxes are budgeted at $1,500 a month at the rental class rate and insurance at $650.
At 75% LTV, the loan is $825,000. On a 30-year fixed, principal and interest is about $5,769, the full payment with taxes and insurance is about $7,919, and DSCR is about 1.26x. At 70% LTV, the loan is $770,000, principal and interest is about $5,384, the payment is about $7,534 and DSCR is about 1.33x.
Both loans clear 1.0x. The mortgage registry tax on either loan is a small but real closing cost. The 70% loan needs about $55,000 more down.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Gross monthly rent | $10,000 | $10,000 |
| Loan amount | $825,000 | $770,000 |
| Principal and interest | $5,769 | $5,384 |
| Property taxes | $1,500 | $1,500 |
| Insurance | $650 | $650 |
| Total monthly payment | $7,919 | $7,534 |
| DSCR | About 1.26x | About 1.33x |
Minnesota winters are hard on roofs, gutters and heating. Ice dams, frozen pipes and boiler failures are common claims on older buildings.
Gather these before you reach out and the first conversation can go straight to numbers.
LendingStreet finances DSCR loans on 5-8 unit buildings in Minneapolis and Hennepin County. Our investor loans are business-purpose loans on non-owner-occupied property.
Fill out the form below or call (877) 298-1001. Tell us the address, rents, price and target leverage, and we will size the loan on a realistic payment, test it at a couple of loan amounts and come back with options. A building that needs repairs or lease-up first can start on a bridge loan and refinance into a DSCR loan once it is rented.
No. Voters authorized it in 2021, but the city has not enacted a policy. St. Paul has rent stabilization, so check which city a building is in.
A tax on the loan amount, paid by the borrower at closing. It is a fraction of a percent of the loan.
Yes. Minneapolis requires a rental license, with tiers based on property condition and history.
Not with us. Our residential DSCR programs cover 1 to 8 units, so a 8-unit building qualifies on rent like any other rental. Nine units and up is financed as commercial.
Up to 80% on a purchase on some programs and up to 75% on a cash-out, but 5-8 unit buildings often carry lower maximums. The exact figure varies by program and by how strongly the rent covers the payment.
Yes. The building's rent is what qualifies the loan. We look at the rent roll, leases, credit (620 minimum) and reserves, not W-2s or tax returns.
We look at a smaller loan, a sub-1.0 DSCR program or a bridge loan while you raise rents or fill vacancies, with a DSCR refinance once the building supports it.
No. Our investor loans are business-purpose loans on non-owner-occupied property. Every unit should be rented to tenants.
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