Most Nevada rentals are in two metros, Las Vegas and Reno, and both have a supply of small apartment buildings from the 1960s through the 1980s. For investors, the 5 to 8 unit building is often the first step past fourplexes.
In short: You can finance a 5 to 8 unit building in Nevada with a LendingStreet DSCR loan that qualifies on rent, from $150,000 with no stated maximum and 30-year terms available. The rent has to cover principal, interest, taxes and insurance at 1.0x on standard programs, and sub-1.0 programs exist. In Nevada, the transfer tax at purchase, summer utility costs and tight short-term rental rules are the local items to check.
In Las Vegas, small apartment buildings cluster east of the Strip, around downtown and the Huntridge area, and in older parts of North Las Vegas. Many are two-story stucco buildings with exterior stairs, small parking lots and common laundry. Henderson has fewer of them and they trade at higher prices.
In Reno and Sparks, older buildings sit in Midtown, near the University of Nevada and in older neighborhoods around downtown. Reno buildings face winter weather that Las Vegas buildings do not, so roofs, heating and snow removal matter more there.
| Area | Typical buildings | What to check |
|---|---|---|
| East Las Vegas, downtown | 1960s to 1980s stucco buildings | HVAC age, roof, parking lot |
| North Las Vegas | Small complexes and fourplex clusters | Utility billing, deferred maintenance |
| Reno Midtown, near UNR | Older walk-ups and conversions | Heating, snow, student turnover |
Start with the rent roll. Add the in-place rent for each unit and, for any vacant unit, a market rent the appraiser can support. Then divide by the full payment, including taxes and insurance. That ratio needs to be 1.0x or higher on standard programs.
Utilities the owner pays, such as common-area electric, water, sewer and trash, are not part of the DSCR payment on most programs, but they are part of your real cash flow. Budget for them separately so the deal still works after the loan closes, not just on the term sheet.
Leverage on 5 to 8 units varies by program and is often below the 80% purchase maximum available on smaller rentals. Cash-out refinances go up to 75% LTV, and seasoning rules vary. If the ratio comes in short, lowering the loan amount or using a sub-1.0 program are the usual fixes.
| Term | What to expect |
|---|---|
| Property type | 5 to 8 unit residential rental |
| Loan amount | From $150,000, no stated maximum |
| Purchase LTV | Up to 80% on some programs; often lower on 5-8 units |
| Cash-out LTV | Up to 75%; varies by program |
| Minimum DSCR | 1.0x standard; sub-1.0 programs exist |
| Credit score | 620 minimum |
| Income documents | None; qualifies on rent |
| Borrower | LLC standard; sign for the loan personally |
Nevada charges a real property transfer tax when a deed is recorded, and the rate is higher in Clark County and Washoe County than the state base rate because counties add their own share. Who pays is set by contract and local custom. Ask your title company for the figure early.
Nevada limits how much a property's tax bill can rise each year, with a higher cap for rental property than for a primary home. Even so, use the current bill and the county assessor's figures in your ratio, not a forecast.
Southern Nevada has no hurricane or significant hail exposure, so insurance on a small building is often more manageable than in coastal or Plains states. The bigger cost is cooling: aging rooftop or split HVAC systems run hard in summer and are expensive to replace.
Many older buildings are on a single water meter, and the owner pays water, sewer and trash. Check how utilities are billed, and whether a utility bill-back system is in place, before you set your budget.
This example is illustrative and not a quote. An investor buys an east Las Vegas seven-unit building for $1,150,000. Each unit rents for about $1,275 a month, so gross rent is $8,925. Property taxes are budgeted at $475 a month and insurance at $400. The owner also pays about $500 a month in utilities and common-area costs, which affect cash flow but are not part of the DSCR payment.
At 75% LTV the loan is $862,500. On 30-year amortization, principal and interest is about $6,031, so the payment with taxes and insurance is about $6,906 and the DSCR is about 1.29x.
That clears the 1.0x standard minimum. After the owner-paid costs, about $1,519 a month is left before vacancy, repairs and management, which is why a realistic expense budget matters as much as the ratio.
| Item | 75% LTV |
|---|---|
| Purchase price | $1,150,000 |
| Gross monthly rent | $8,925 |
| Loan amount | $862,500 |
| Principal and interest | $6,031 |
| Property taxes | $475 |
| Insurance | $400 |
| Monthly payment (PITI) | $6,906 |
| DSCR | About 1.29x |
Clark County and the City of Las Vegas both regulate short-term rentals tightly, with license requirements, distance rules and limits by zoning. A 5 to 8 unit building is almost always underwritten on 12-month leases, so plan around long-term rent.
Nevada's landlord-tenant statutes set notice periods and deposit rules. Eviction procedures have changed in recent years, so confirm current rules with a local attorney or property manager.
Las Vegas rents follow the hospitality and logistics economy, while Reno has added warehouse, manufacturing and tech jobs east of Sparks. Small buildings near job centers and transit lines tend to lease quickly. Rents can move faster here than in many Midwest markets, in both directions, so a conservative rent estimate is safer than the top of the range.
Most delays on small apartment loans come from missing items. Start with these.
Our investor loans are business-purpose loans on non-owner-occupied property. Tell us about the building: address, unit mix, rents, taxes, insurance and the loan you have in mind. We will run the numbers, flag any local issues that could affect the file and give you options. Fill out the form below or call (877) 298-1001.
Nine or more units is commercial financing, covered on our multifamily loans page.
Yes. Nevada charges a real property transfer tax at recording, and Clark County adds to the base rate. Who pays depends on the contract, so confirm with your title company.
Usually not easily. Clark County and Las Vegas regulate STRs tightly. Most 5 to 8 unit buildings are financed on 12-month lease income.
It affects your operating costs. If you pay water, sewer and trash for all units, budget for it so your real cash flow matches the underwriting.
Purchase loans go up to 80% LTV on some programs, but 5 to 8 unit buildings and larger balances often get less. Plan for 20% to 30% down plus reserves, depending on the program and the ratio.
No. The loan qualifies on the building's rent. You need a 620 or higher credit score, reserves and entity documents if you buy in an LLC.
Vacant units can often be counted at a market rent the appraiser supports, but some programs want a minimum number of units leased. It varies by program, so tell us about vacancies up front.
On our programs, 1 to 8 units is residential, so 5, 6, 7 and 8 unit buildings qualify for a DSCR loan on rent. Nine or more units moves to commercial financing.
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