From Brooklyn and the Bronx to Buffalo, Rochester and Albany, New York has a huge stock of 5 to 8 unit buildings. In this state, the unit count itself can change the rules, so the jump from five units to six deserves careful attention.
In short: Yes. LendingStreet finances 5 to 8 unit rental buildings in New York 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, the standard minimum DSCR is 1.0x and the minimum credit score is 620, while maximum LTV on 5 to 8 units can be lower than on 1 to 4 units and varies by program. In New York, rent stabilization for older buildings with six or more units, the mortgage recording tax and high property taxes are the items that decide most files.
In New York City, small walk-ups are common in Brooklyn, Queens, the Bronx and Upper Manhattan. Many were built before 1974, which matters for rent regulation. Prices are high, so ratios are tight unless rents are at market.
Upstate, Buffalo's West Side and Elmwood Village, Rochester's South Wedge and Park Avenue areas and Albany's Center Square and Pine Hills have large houses split into five to eight units, plus brick buildings near downtown. Syracuse, Troy, Schenectady and Utica have similar stock at lower prices.
| Area | Typical buildings | What to check |
|---|---|---|
| New York City | Pre-war and pre-1974 walk-ups | Rent stabilization status at 6+ units |
| Buffalo, Rochester, Syracuse | Converted houses and brick buildings | Heat, roofs, lead paint |
| Albany, Troy, Schenectady | Rowhouses and conversions | Code compliance, parking |
The ratio is simple: total monthly rent from all units divided by the monthly payment, which includes principal, interest, property taxes, insurance and any HOA dues. On standard programs it has to reach 1.0x, and a higher ratio can improve terms. Sub-1.0 programs exist for buildings that fall a little short.
Appraisers on 5 to 8 unit buildings usually look at both comparable sales and the income the building produces, and they give an opinion of market rent for each unit. If the in-place rents are well below market, underwriting generally works from the leases you actually have, so a building with old below-market leases may size smaller than its potential suggests.
For our programs, 5 to 8 units is still residential, so the loan is underwritten like a larger version of a fourplex loan rather than a commercial apartment loan. The difference is that maximum LTV can be lower on 5 to 8 unit properties and on larger balances, and reserve requirements can be higher. Both vary by program.
| 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 |
New York charges a mortgage recording tax on new loans, and the rate is higher in New York City and several downstate counties. There are also state transfer taxes, and New York City adds its own. On a 5 to 8 unit purchase these taxes can be a large closing cost, so ask your title company for figures early.
Property taxes upstate are high relative to values in many towns, and they vary by city, county and school district. Use the current tax bills, including school taxes billed separately.
Upstate winters are hard on older buildings. Roofs, boilers and frozen pipes are common insurance topics. Buildings in Buffalo and Rochester often have owner-paid heat, which is a large expense.
Many buildings were built before 1978, so lead paint rules apply. Some cities, including Rochester, have their own lead inspection rules for rentals.
This example is illustrative and not a quote. An investor buys a Buffalo West Side six-unit building for $720,000. Each unit rents for about $1,300 a month, so gross rent is $7,800. Property taxes are budgeted at $1,250 a month and insurance at $400. The owner also pays about $300 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 $540,000. On 30-year amortization, principal and interest is about $3,776, so the payment with taxes and insurance is about $5,426 and the DSCR is about 1.44x.
That clears the 1.0x standard minimum. After the owner-paid costs, about $2,074 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 | $720,000 |
| Gross monthly rent | $7,800 |
| Loan amount | $540,000 |
| Principal and interest | $3,776 |
| Property taxes | $1,250 |
| Insurance | $400 |
| Monthly payment (PITI) | $5,426 |
| DSCR | About 1.44x |
In New York City, buildings with six or more units built before 1974 are generally subject to rent stabilization, and some municipalities outside the city have opted into the state program. Stabilized rents limit increases, so use the actual legal rents in your numbers. Check registration history before you buy.
In 2024 New York adopted a Good Cause Eviction law that applies in New York City and in localities that opt in, with exemptions for some small landlords. Confirm whether it applies to your building.
Because rent stabilization can apply to older NYC buildings with six or more units, a five-unit building and a six-unit building on the same block can have very different rent upside. Upstate, the difference usually matters less, but a few localities have opted in. Confirm the status of any 6 to 8 unit building early.
A complete package gets a faster, clearer answer on a 5 to 8 unit building.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, rent roll and the loan amount you want. The team will run the ratio on realistic taxes and insurance, check it at a few loan amounts and come back with options, including sub-1.0 DSCR programs where they fit. Use the form below or call (877) 298-1001.
Buildings with nine or more units are commercial; for those, see our multifamily page.
Often, if it was built before 1974. Buildings with six or more units built before 1974 are generally covered. Check the registration history with the state housing agency.
Yes. New York charges a mortgage recording tax on new loans, and it is higher in NYC and some downstate counties. Ask your title company for the figure.
Only in localities that opt in, with exemptions for some small landlords. Check whether your city has adopted it.
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.
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.
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