Orlando's rental demand comes from tourism, UCF, health care and a fast-growing population. Small apartment buildings close to downtown are scarce and expensive, while older suburban buildings offer more room in the numbers.
In short: LendingStreet finances 5 to 8 unit rental buildings across Orlando, Orange, Seminole and Osceola counties with DSCR loans that qualify on rent, not tax returns. Loans start at $150,000 with no stated maximum and a 1.0x standard minimum DSCR. In Orlando, budget non-homestead taxes on your purchase price and price wind insurance early.
Mills 50, Colonialtown, Thornton Park and Lake Eola Heights have small 1950s and 1960s buildings near downtown. College Park and Audubon Park have a few small buildings among single-family homes. Pine Hills, Conway and areas along Semoran Boulevard offer older garden buildings at lower prices.
Near UCF, buildings rent to students and staff. Kissimmee and Sanford have older stock outside the core.
Most small buildings near downtown are one- or two-story concrete block buildings with flat or low-slope roofs, built in the decades after World War II. Many have been renovated with new kitchens and impact windows; others still have original windows and older electrical panels that insurers will ask about.
| Area | Typical stock | Investor note |
|---|---|---|
| Mills 50 and Colonialtown | 1950s-1960s small buildings | Strong rents, limited supply |
| College Park and Audubon Park | Small buildings | High prices |
| Pine Hills and Conway | Older garden buildings | Lower prices, more work |
| Near UCF | Small buildings | Student demand |
Rental property does not receive Florida's homestead exemption or Save Our Homes cap, and the value resets after a sale. Non-homestead property gets a 10% annual cap on non-school assessments.
Florida charges doc stamps on the deed, the note and an intangible tax on the mortgage.
Budgeting on the seller's bill is a common mistake. A building held by the same owner for 15 years can have an assessed value well below market, and the first bill after your purchase will reflect what you paid. Use your price and the current Orange County and city millage.
In Orange County, the seller customarily pays deed doc stamps, while the borrower pays doc stamps on the note and intangible tax on the mortgage. Ask your title company for a full estimate.
This example is illustrative and not a quote. An investor buys an eight-unit 1960s building in Mills 50 for $1,360,000. Gross rent is $11,600 a month, an average of $1,450 for each of the 8 units, and the monthly budget includes $2,000 in taxes and $900 in insurance.
A $1,020,000 loan (75% LTV) carries estimated principal and interest of about $7,132, a full payment near $10,032 and a ratio of about 1.16x. Dropping to 70% LTV, or $952,000, brings the payment to about $9,557 and the ratio to about 1.21x; the investor needs $68,000 more cash.
Taxes reset after the sale and insurance is substantial, so the ratio is moderate. A newer roof could help.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Purchase price | $1,360,000 | $1,360,000 |
| Loan amount | $1,020,000 | $952,000 |
| Down payment | $340,000 | $408,000 |
| Estimated principal and interest | $7,132 | $6,657 |
| Property taxes (monthly) | $2,000 | $2,000 |
| Insurance (monthly) | $900 | $900 |
| Total monthly payment | $10,032 | $9,557 |
| Gross monthly rent | $11,600 | $11,600 |
| DSCR | About 1.16x | About 1.21x |
Hurricane Ian in 2022 caused major flooding in parts of Orlando, and Milton in 2024 brought wind damage. Wind premiums depend on roof age and mitigation features, and some low areas are in mapped flood zones.
Some parts of the city, especially near lakes, creeks and low drainage basins, flooded during Ian even outside mapped zones. Ask about water history, and consider flood coverage even when it is not required.
Insurers rely on a wind mitigation report and an inspection of the roof, electrical, plumbing and HVAC when they price a policy. Order both before you finalize your offer.
Theme parks, hotels, the convention center, UCF, AdventHealth and Orlando Health support broad demand. Buildings near job centers tend to lease fastest.
Many hospitality workers prefer to live close to International Drive, the parks and downtown, while UCF students cluster east along University Boulevard and Alafaya Trail. A building's location relative to those job and school centers drives both rent and vacancy.
New apartment complexes along I-4 and in Lake Nona compete for tenants and sometimes offer concessions, which can cap what an older building can charge.
The City of Orlando and Orange County have separate permitting. Short-term rental rules vary, and most 5-8 unit buildings are underwritten on long-term leases.
Orange County and the City of Orlando have tightened rules on short-term rentals in many residential zones, while some areas near the parks allow them. A building's zoning decides whether STR income could ever count. For most investors, long-term leases are the plan.
Confirm zoning allows the building's unit count, and check for open code cases or unpermitted work before closing.
A building with five to eight units is still residential financing, so it qualifies on rent the way a single-family rental does. In Orlando, the appraiser's rent schedule and any signed leases set the income, and the ratio compares that income with principal, interest, taxes, insurance and any association dues. No W-2s or tax returns are needed.
Loans start at $150,000 with no stated maximum. Purchases can reach 80% LTV and cash-out refinances 75% LTV, but on 5-8 units the top leverage is often lower and varies by program. The standard minimum DSCR is 1.0x, the minimum credit score is 620, LLC borrowers are standard and 30-year terms are available. If the ratio lands just under 1.0x, a sub-1.0 DSCR program may fit.
Get a quote with the form below or by calling (877) 298-1001. Our investor loans are business-purpose loans on non-owner-occupied property, and every 5-8 unit file is reviewed on the building's own cash flow. Compare with our Florida 5-8 unit DSCR page for state-level rules, and note that nine units and up is a commercial loan.
No. Rental property is taxed without the homestead exemption, the value resets after a sale and only a 10% non-homestead cap applies afterward.
In mapped flood zones on a financed building, generally yes. Ian flooded some areas outside mapped zones, so many owners buy it anyway.
Only where zoning and permits allow it. Most small buildings near downtown are underwritten on long-term leases.
By custom the seller pays deed doc stamps, while the borrower pays doc stamps on the note and intangible tax on the mortgage.
Yes. Student leases count when supported by the appraiser's market rent.
The appraiser's market rent can support vacant units on some programs, but a building with weak occupancy usually gets more scrutiny. A bridge loan can carry a lease-up before a DSCR refinance.
No. The loan qualifies on the building's rent, not your personal income, so W-2s and tax returns are not required. A 620 minimum credit score applies.
Yes, up to 75% LTV on a cash-out refinance, often lower on 5-8 units. Seasoning requirements vary by program, and the rent must still cover the new payment.
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