Ohio's older cities have some of the best supply of 5 to 8 unit buildings in the Midwest. Brick walk-ups, converted houses and small apartment blocks trade often, and prices per unit still let many deals clear the ratio.
In short: Yes. LendingStreet finances 5 to 8 unit rental buildings in Ohio 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 Ohio, reappraisals that raise property taxes, city lead and time-of-sale rules and building age are the items that decide most files.
Cleveland and its inner-ring suburbs have one of the deepest supplies of small apartment buildings in the Midwest. Lakewood, Cleveland Heights, Ohio City, Tremont and Detroit-Shoreway all have brick walk-ups with five to eight units, plus large up-and-down doubles that were split further over the years. Columbus has small buildings in the Short North, Victorian Village, Italian Village, Clintonville and the campus area near Ohio State.
Cincinnati has a large stock of historic brick buildings in Over-the-Rhine, Northside, Clifton near the University of Cincinnati, Walnut Hills and Price Hill, many of them three or four stories on narrow lots. Dayton, Toledo, Akron and Youngstown have similar buildings at lower prices per unit, often with longer-tenured tenants.
| Area | Typical buildings | What to check |
|---|---|---|
| Cleveland, Lakewood, Cleveland Heights | Brick walk-ups and doubles | Lead certification, time-of-sale rules |
| Columbus: Short North, campus | Small buildings near jobs | Higher prices; student turnover |
| Cincinnati, Dayton, Toledo | Historic brick buildings | Deferred maintenance, roofs |
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 |
Many Ohio buildings were built before 1940. Roofs, boilers, electrical service and plumbing are common insurance and appraisal topics. Get inspections early.
Winter weather and freeze risk matter, especially in vacant units. Insurance costs in Ohio are generally moderate, but older buildings can draw higher premiums.
Ohio counties charge a real property conveyance fee at sale, customarily paid by the seller, and the rate varies by county. Buyers pay title insurance, recording fees, the appraisal and lender costs.
Ohio counties reappraise property every six years, with an update in the third year, and recent cycles raised values sharply in many counties, including Cuyahoga, Franklin and Hamilton. Check the current bill, the next reappraisal or update date and whether any levies are on the ballot. A sale price well above the current value can also prompt a value review.
This example is illustrative and not a quote. An investor buys a Cleveland Heights six-unit building for $650,000. Each unit rents for about $1,100 a month, so gross rent is $6,600. Property taxes are budgeted at $1,000 a month and insurance at $350. 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 $487,500. On 30-year amortization, principal and interest is about $3,409, so the payment with taxes and insurance is about $4,759 and the DSCR is about 1.39x.
That clears the 1.0x standard minimum. After the owner-paid costs, about $1,541 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 | $650,000 |
| Gross monthly rent | $6,600 |
| Loan amount | $487,500 |
| Principal and interest | $3,409 |
| Property taxes | $1,000 |
| Insurance | $350 |
| Monthly payment (PITI) | $4,759 |
| DSCR | About 1.39x |
Cleveland requires lead-safe certification for many pre-1978 rentals, and Toledo has its own lead-safe rental ordinance. Cleveland, Columbus, Cincinnati and many suburbs require rental registration, and some run interior inspection programs. Ask the seller for current registrations and any open violations.
Several Cleveland suburbs, including Cleveland Heights, require a time-of-sale inspection before a building can transfer, and the buyer may need to escrow for or complete required repairs. Check with the city early so the repair list does not surprise you at closing.
Prices per unit in Cleveland, Dayton, Toledo and Akron are moderate, while rents have risen steadily, which can produce ratios that clear the minimum at standard leverage. Columbus and the stronger parts of Cincinnati are higher priced, and ratios there look more like those in larger coastal metros.
The tradeoff in the lower-priced markets is condition and management. Older buildings need capital, and tenant turnover costs add up. A strong ratio on paper should still be checked against a realistic repair and vacancy budget.
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.
By custom the seller pays the county conveyance fee. Rates vary by county, so confirm the amount and the split with your title company.
Many pre-1978 rentals in Cleveland need lead-safe certification. Check the building's status with the city before you buy and budget for any work.
Some Ohio suburbs, including Cleveland Heights, require an inspection before a building can transfer. Repairs or an escrow may be required, so plan early.
They can. Counties reappraise on a six-year cycle with an update in between, and a sale can prompt a value review. Budget on a realistic future bill.
The standard minimum is 1.0x, meaning rent covers principal, interest, taxes and insurance. Sub-1.0 programs exist for buildings that fall a little short.
Yes. LLC borrowers are standard. You will sign for the loan personally, and you will need the LLC's formation documents and operating agreement.
Yes. Cash-out goes up to 75% LTV, often lower on 5 to 8 units, and the rent has to cover the new payment at the program minimum. Seasoning rules vary by program.
Our DSCR programs have no stated maximum. Loans start at $150,000, and larger balances are reviewed case by case, often with lower maximum LTV.
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