Ogden's railroad-era growth left it with something unusual for the Wasatch Front: a stock of small brick apartment buildings close to downtown. These five- to eight-unit buildings sit between residential and commercial lending, and DSCR financing treats them as residential.
In short: LendingStreet finances 5 to 8 unit residential buildings in Ogden and northern Utah with DSCR loans that qualify on combined rent, with no tax returns and LLC borrowers standard. Loans start at $150,000, the standard minimum DSCR is 1.0x, and maximum LTV on 5-8 units varies by program, often lower than on a single-family rental. Buildings with 9 or more units are commercial.
Most residential programs stop at four units, and commercial apartment loans are built for larger properties. A six-unit building can fall between them. Our DSCR program treats 5 to 8 units as residential, qualifying on rent without a full commercial underwriting package.
Maximum LTV can be lower and reserves higher than on a house, and the exact terms vary by program.
Many local banks will finance a small apartment building, but often on shorter terms with a balloon and a review of your personal income and tax returns. A 30-year DSCR loan avoids the balloon and keeps the focus on the building's rent.
Small apartment buildings cluster in a few parts of the Ogden area.
Location inside these areas matters. Buildings within walking distance of downtown, Weber State, McKay-Dee Hospital or a bus line on Washington Boulevard or Harrison Boulevard tend to lease faster. Parking is a frequent issue with older buildings, which were often built with little off-street space.
| Area | Typical building | Notes |
|---|---|---|
| Central Ogden, Jefferson, East Central | Early 1900s brick walk-ups | Unreinforced masonry; older systems |
| Near Weber State | 1960s-1980s buildings | Student and staff demand |
| Downtown edges | Mixed older buildings | Parking and zoning checks |
| South Ogden, Riverdale, Roy | 1970s-1980s six- and eight-plexes | Flat roofs, shared laundry |
This example is illustrative and not a quote. An investor buys a six-unit brick building in central Ogden for $900,000. Each unit rents for $1,050, or $6,300 a month. Taxes, with the residential exemption on long-term rentals, are budgeted at $520 a month; insurance at $380.
At 70% LTV, the loan is $630,000, estimated principal and interest about $4,298, total payment about $5,198 and DSCR about 1.21x. At 75%, if the program allows it, the loan is $675,000, the payment about $5,505 and DSCR about 1.14x.
Owner-paid utilities are not in the formula, so run a full operating budget alongside the DSCR. A strong ratio on paper can still be tight on cash if the owner pays heat and water for six units.
These figures assume every unit is leased at the rents shown; vacancy and owner-paid costs come out of your cash flow, not the ratio.
| Item | 70% LTV | 75% LTV |
|---|---|---|
| Loan amount | $630,000 | $675,000 |
| Estimated principal and interest | $4,298 | $4,605 |
| Taxes and insurance | $900 | $900 |
| Total payment | $5,198 | $5,505 |
| DSCR at $6,300 rent | About 1.21x | About 1.14x |
Many central Ogden apartment buildings are unreinforced masonry close to the Wasatch Fault. Standard policies exclude earthquake damage, and earthquake coverage on brick buildings can be expensive or limited. Some owners invest in seismic retrofits, which can help with coverage.
Insurers also look at roof age, electrical systems and fire separation. Get a quote during your inspection period, and include it in the ratio.
Utah's earthquake risk also shows up in due diligence. Ask whether the building has had any seismic work, look for cracks in brick and foundations, and have a structural engineer review older buildings before you commit.
Snow loads on older flat roofs are another item insurers and inspectors look at. Ask for the roof age and any history of leaks or ice damming.
Ogden's rental business license is typically based on the number of units, and the Good Landlord program can lower the fee. Ask the city for the current fee structure and any inspection or training requirements before you buy. Other cities in Weber and Davis counties have their own rules.
Ask for any open city violations and the license history. A building that has been unlicensed or out of compliance may need repairs before it can be licensed under your name.
Older buildings may have a shared boiler and a single water meter, so the owner pays heat and water for every unit. Those costs are not in the DSCR formula, but Ogden winters make heat a real expense. Newer six- and eight-plexes often have separate furnaces and meters.
Ask the seller for a year of utility bills and the rent roll before making an offer.
Some owners add separate meters or efficient heating during a renovation to shift costs to tenants and make the building easier to run. Those upgrades take time and permits, so plan them with your contractor and the utility.
Utah does not publish sale prices, and small apartment buildings do not sell often in Ogden. Appraisers rely on MLS data, agent reports and the income approach. Provide the rent roll, leases, operating history and a list of improvements.
Small buildings often come with below-market rents and month-to-month tenants when a long-time owner sells. The loan is sized on rent in place or a supportable market rent, not on future increases. If rents are well below market, a bridge loan to renovate and reset rents, followed by a DSCR refinance, can produce a larger permanent loan.
Expect the appraisal to take longer than on a house, and set your contract dates with that in mind.
Buildings with nine or more units are commercial; see our multifamily loans page. For two to four units, see our fourplex guide.
A building that sits on a large lot or next to commercial uses can raise zoning questions, so confirm that the current number of units is legal with the city before you buy.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, rent roll and utility setup through the form below, or call (877) 298-1001. Our Utah 5-8 unit page covers the rest of the state.
We will run the ratio at a couple of leverage levels and tell you what reserves to plan for.
For our DSCR program, 5 to 8 units are residential. Nine or more is commercial.
It varies by program and is often lower than on a single-family rental.
Long-term rental units that are tenants' primary residences can qualify. Confirm with the Weber County Assessor.
It affects insurance more than the loan. Get an earthquake quote if you want coverage on an older brick building.
No. The loan qualifies on the building's rent.
A bridge loan first, then a DSCR refinance once leased, may fit better.
No, but they affect cash flow. Get a year of utility bills.
With five or more properties, a blanket portfolio loan may fit.
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