Missouri's small multifamily market includes brick flats in St. Louis and 3-story walk-ups in Kansas City, plus buildings in Springfield and Columbia. There is no transfer tax, and older brick stock is common.
In short: Yes. LendingStreet finances 5 to 8 unit rental buildings in Missouri 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. Missouri has no real estate transfer tax, so property taxes, building condition and city inspection programs usually decide the ratio.
St. Louis has some of the best small multifamily stock in the Midwest: brick two-family, four-family and six-family flats in South City neighborhoods such as Tower Grove South, Dutchtown, Bevo Mill and Carondelet, many from the early 1900s. North City and the inner-ring suburbs add more at lower prices.
Kansas City has 3-story brick walk-ups in Midtown, Westport, Hyde Park and Valentine, often with six to eight units around a central stairway. Springfield near Missouri State and Columbia near the University of Missouri have small buildings serving students.
LendingStreet treats 1 to 8 units as residential, so a five-, six-, seven- or eight-unit building in Missouri 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. St. Louis and Kansas City have regular small multifamily sales.
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.
Missouri does not charge a real estate transfer tax, so closing costs are mostly title, recording and lender fees.
Missouri reassesses property in odd-numbered years, and rates vary by county and city. St. Louis City and Jackson County have been through contested reassessments, so use the latest notice and expect changes. Missouri also taxes personal property separately.
Missouri sees hail, wind and tornado claims, and carriers price roofs closely. Older brick buildings may draw questions about wiring, plumbing, boilers and chimneys.
Parts of St. Louis and Kansas City near the Mississippi and Missouri rivers sit in flood zones. A whole-building quote is the number that goes into the DSCR payment.
This example is illustrative and not a quote. An investor buys a St. Louis South City six-family for $540,000. Each of the 6 units rents for $925 a month, for $5,550 in total. Property taxes are budgeted at $7,500 a year and the whole-building insurance quote is $7,000 a year.
At 75% LTV the loan is $405,000, leaving $135,000 down before closing costs. On 30-year amortization, principal and interest is about $2,832 a month. Adding $1,208 for taxes and insurance brings the payment to about $4,040, so the DSCR is about 1.37x, above the 1.0x standard minimum. If underwriting counted one unit as vacant with no market rent support, the ratio would drop to about 1.14x, which is why signed leases and the appraiser's rent analysis matter.
| Item | Amount |
|---|---|
| Purchase price | $540,000 |
| Units and gross monthly rent | 6 units, $5,550 |
| Loan at 75% LTV | $405,000 |
| Principal and interest (30-year) | About $2,832 |
| Taxes and insurance per month | About $1,208 |
| Total monthly payment | About $4,040 |
| DSCR | About 1.37x |
St. Louis requires occupancy inspections and permits for new tenants in many cases, and Kansas City's Healthy Homes program requires rental permits and allows inspections. Missouri state law preempts local rent control.
Underwriting reads leases and rent rolls, so keep them organized, and confirm that each unit has the permits it needs before closing.
Having these together before you apply keeps the appraisal and underwriting on schedule.
These loans fit investors in Missouri 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 Missouri 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.
No. Missouri does not charge a real estate transfer tax.
Kansas City's Healthy Homes program requires rental permits and may involve inspections.
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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