Walk through Sunnyside or Woodburn and you will see dozens of small apartment buildings, many of them old houses expanded or divided over the years to hold more students. Buildings of five to eight units are a core part of Morgantown's rental stock.
In short: LendingStreet finances 5 to 8 unit residential buildings in Morgantown with DSCR loans that qualify on the rent roll, with no W-2s or tax returns required. Loans start at $150,000 with no stated maximum, and the standard minimum DSCR is 1.0x. Maximum LTV on 5-8 unit properties can be lower than on smaller rentals and varies by program.
Sunnyside, between downtown and the stadium area, has the densest concentration of student buildings, many with units on every floor. Woodburn, Wiles Hill and First Ward have converted houses and small walk-ups. Near Evansdale and the Health Sciences Center, buildings lease more to graduate students and medical staff, with fewer bedrooms per unit and longer stays.
South Park and Westover have some older brick buildings with five to eight apartments leased to working tenants. Newer small buildings appear in Granville and along the routes toward Cheat Lake.
Buildings in this size range trade less often than houses, and many sell privately between landlords who know each other. Investors who already own duplexes and fourplexes near campus are often the first to hear when one comes available, and they tend to move up to five- and six-unit buildings over time.
Most residential loan programs stop at four units, while many commercial lenders want larger buildings, shorter terms and full financial statements. Our 5-8 unit DSCR program treats these buildings as residential investments, qualifying on the rent roll with 30-year terms available. Buildings with 9 or more units are commercial; see our multifamily page.
That structure suits investors who plan to hold for years. The question becomes whether the building's rent covers its payment, not whether your personal financial statements fit a commercial lender's model.
This example is illustrative and not a quote. An investor buys a seven-unit Sunnyside building for $725,000. Each unit rents for an average of $900, or $6,300 a month in total, based on bedroom leases. Taxes are budgeted at $800 a month and insurance at $420.
At 75% LTV the loan is $543,750 and the full payment is about $5,022, for a DSCR of about 1.25x. If the program sets this building at 70% LTV, the loan is $507,500, the payment about $4,769 and DSCR about 1.32x.
Lower leverage is common on 5-8 unit buildings, so plan for a larger down payment than you would on a duplex. The cushion also helps in student buildings, where a unit or two can sit empty for part of a summer.
| 75% LTV | 70% LTV | |
|---|---|---|
| Loan | $543,750 | $507,500 |
| Monthly payment | $5,022 | $4,769 |
| DSCR | 1.25x | 1.32x |
Student buildings are often leased by the bedroom. For underwriting, the rent roll should list each unit, each bedroom lease and the total per unit, along with lease dates. Signed leases for the next school year can count. Vacant units lower the DSCR unless leases are signed, and the appraiser will compare your rents with similar buildings nearby.
Buildings leased to medical staff and graduate students tend to have fewer, larger leases and less turnover, which can make the rent roll simpler to document.
Keep a record of rent collected for each unit over the past year.
Morgantown's zoning, occupancy and parking rules shape how many tenants a building can legally house. Before you buy, confirm:
A building that houses more tenants than its legal occupancy allows may look strong on paper, but the rent we can use and the value an appraiser assigns depend on what is permitted. Confirm before you price the deal around current rents.
West Virginia assesses property at 60% of appraised value. A rental building inside the city is Class IV, with a higher levy than owner-occupied homes. Ask the seller for recent tax bills and confirm with the Monongalia County assessor. Insurance on older multi-unit frame buildings on steep lots can be significant; get quotes that cover liability, slope and any flood exposure near Deckers Creek or the river.
Owner-paid utilities, trash and common-area electric are common in older student buildings. They are not part of the DSCR formula, but they affect real cash flow, so get two years of bills before you commit.
Some buildings come with deferred maintenance, vacancies or registration problems. A bridge loan can fund the purchase and repairs, and a DSCR refinance follows once the building is leased and in good standing with the city. Time repairs so units can be shown during the fall and winter leasing season.
Run the refinance numbers before you buy: expected rent per unit after repairs, taxes at the Class IV levy and a real insurance quote.
A 5-8 unit student building needs active management: showings, move-in and move-out, security deposits, summer turnover and responsive repairs. Many owners use a local property manager. Lenders like to see a clear plan and records of rent collected, especially on older buildings.
Tell us whether you manage the building yourself or use a company, how rent is collected and when leases renew. A short summary is enough to start.
Send the address, price, rent roll with bedroom leases, two years of expenses if available, insurance quote, rental registration status and photos. We will tell you the likely loan amount and DSCR.
Yes. LendingStreet makes DSCR loans on 5 to 8 unit residential buildings in Morgantown and Monongalia County, including student buildings.
It varies by program and is often lower than on 1-4 unit rentals. Larger balances can lower it further.
Yes. List each bedroom lease and total them by unit. Signed leases for the next school year can count. Vacant bedrooms lower the rent roll.
Under our 5-8 unit program it is treated as residential. Buildings with 9 or more units are commercial.
No. The loan qualifies on the building's rent roll. Leases and the appraisal confirm the rent.
Resolve them before refinancing, or use a bridge loan to buy and fix the building first.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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