Rhode Island is known for its triple-deckers, but Providence, Pawtucket and Woonsocket also have five- to eight-unit buildings: larger triple-decker variants, brick blocks and converted Victorians.
In short: LendingStreet makes DSCR loans on 5, 6, 7 and 8 unit residential rentals in Rhode Island, sized on the building's rent rather than your income. Expect a 620 minimum credit score, a 1.0x standard minimum ratio and leverage that varies by program, often a little below what a fourplex gets. In Rhode Island, higher tax rates on non-owner-occupied property in some cities, lead certificate rules and coastal flood exposure are the local items.
Providence has the largest supply, with five- to eight-unit buildings on the West End, Federal Hill, Elmhurst, Mount Pleasant, Olneyville and the East Side near Brown. Many are oversized triple-decker variants, brick blocks with storefronts below, or large Victorians split into apartments.
Pawtucket and Central Falls have dense older multifamily near their downtowns, and Woonsocket has mill-era buildings near the Blackstone River. Cranston, Warwick and East Providence have fewer 5 to 8 unit buildings, and Newport has some at much higher prices, where seasonal and student demand both play a role.
| Area | Typical buildings | What to check |
|---|---|---|
| Providence: West End, Federal Hill | Triple-decker variants and blocks | Lead certificate, fire code |
| Pawtucket, Central Falls | Dense older multifamily | Deferred maintenance, heat |
| Woonsocket | Mill-era buildings | Systems, egress |
Underwriting adds up the rent from every unit, using signed leases and the appraiser's market rent opinion, and divides it by the full monthly payment: principal, interest, taxes, insurance and HOA dues if any. Standard programs look for 1.0x or better.
Taxes and insurance carry more weight on a 5 to 8 unit building than on a single-family rental, because the bills are bigger and they sit inside the payment. A tax bill that is $300 a month higher than you planned, or an insurance quote that jumps at renewal, can move the ratio more than a modest change in rate.
Because 5 to 8 units is treated as residential on our programs, you qualify on rent with no W-2s or tax returns. What changes from a fourplex is leverage: purchase loans go up to 80% LTV on some programs, but 5 to 8 unit buildings often get less. Plan your down payment with that in mind.
| 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 |
Coastal areas around Narragansett Bay face hurricane and flood risk, and some neighborhoods near the Providence River and Woonasquatucket are in mapped flood zones. If the building is in a flood zone, flood insurance is generally required and the premium counts in the ratio.
Many buildings date to the late 1800s or early 1900s, with older wiring, boilers and fire escapes. Insurers ask about electrical updates and fire separation between units. Get inspections early.
Rhode Island charges a realty conveyance tax at sale, and recent law added an extra rate on the portion of higher-priced residential sales above a set threshold. Who pays is set by contract and custom. Ask your title company for current figures.
Some cities, including Providence, tax non-owner-occupied residential property at a higher rate than homes occupied by the owner. Investors do not get the lower rate, so use the investor rate and the current assessed value in your numbers. Cities revalue on their own cycles.
This example is illustrative and not a quote. An investor buys a Providence West End six-unit building for $1,000,000. Each unit rents for about $1,650 a month, so gross rent is $9,900. Property taxes are budgeted at $1,100 a month and insurance at $425. The owner also pays about $350 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 $750,000. On 30-year amortization, principal and interest is about $5,244, so the payment with taxes and insurance is about $6,769 and the DSCR is about 1.46x.
That clears the 1.0x standard minimum. After the owner-paid costs, about $2,781 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 | $1,000,000 |
| Gross monthly rent | $9,900 |
| Loan amount | $750,000 |
| Principal and interest | $5,244 |
| Property taxes | $1,100 |
| Insurance | $425 |
| Monthly payment (PITI) | $6,769 |
| DSCR | About 1.46x |
Rhode Island requires lead certificates for many pre-1978 rental units, and the rules have been tightened in recent years. Budget for the inspection and any mitigation work, and ask the seller for existing certificates.
Providence has rental registration requirements for non-owner-occupied buildings. Rhode Island's Residential Landlord and Tenant Act sets rules for deposits and notices, and the state has adopted additional tenant protections in recent sessions. Confirm current rules with a local attorney.
Demand from Brown, RISD, Providence College, Johnson and Wales, the hospital systems and commuters to Boston keeps Providence vacancy low. Small buildings near campuses and transit rent quickly.
Rents still have to cover the full payment, including the investor tax rate and insurance. Because prices have risen, a ratio that worked a few years ago may need a lower loan amount today. Run the numbers at a few loan amounts.
Gather these before you reach out and the appraisal and underwriting move faster.
Our investor loans are business-purpose loans on non-owner-occupied property. Share the property address, rent roll, purchase price or current loan, and your target loan amount. We will size the ratio with real tax and insurance figures and show you what each loan amount does to it. Get a quote with the form below or call (877) 298-1001.
If the building has nine or more units, it falls under commercial financing instead; see our multifamily loans page.
Yes. Providence taxes non-owner-occupied residential property at a higher rate than homes occupied by the owner. Use that rate in your numbers.
Many pre-1978 rental units need one. Ask the seller for existing certificates and budget for any work.
Yes. Rhode Island charges a realty conveyance tax, with an added rate on part of higher-priced residential sales. Ask your title company.
Yes. If the building is in a mapped flood zone and coverage is required, the premium is part of the payment.
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.
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.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.