Richmond's Fan District and Museum District are lined with brick rowhouses and small apartment buildings from the early 1900s. They lease easily to VCU students, hospital staff and young professionals, and they make up one of the deepest pools of 5-8 unit buildings in Virginia.
In short: LendingStreet finances 5-8 unit buildings in Richmond, Henrico and Chesterfield with DSCR loans that qualify on combined rent, with no W-2s or tax returns and LLC borrowers allowed. Loans start at $150,000 with no stated maximum, and leverage on 5-8 units varies by program. In the city, annual reassessments and historic review are the two local items to check first.
The Fan and the Museum District have the largest concentration of small brick walk-ups and rowhouses split into units, many within walking distance of VCU. Church Hill and Union Hill add older buildings east of downtown, and Jackson Ward and Carver sit between downtown and the university.
South of the James, Manchester and Forest Hill have more 1920s-50s buildings. Henrico's near West End and Chesterfield's older corridors have small garden buildings with lower prices per unit.
| Area | Typical building | Main local issue |
|---|---|---|
| Fan and Museum District | Brick walk-ups and converted rowhouses | Historic review on exteriors |
| Church Hill and Union Hill | Older rowhouse buildings | Renovation quality and parking |
| Manchester and Forest Hill | 1920s-50s small buildings | Flood zones near the river |
| Henrico and Chesterfield | Garden-style buildings | County tax rates and schools |
Large parts of the city, including St. John's Church in Church Hill and sections of the Fan, fall within Old and Historic Districts where the Commission of Architectural Review approves exterior changes. Windows, porches and rooflines are what reviewers focus on most.
This does not affect DSCR qualification, but it can stretch a renovation timeline and budget. If you plan exterior work, check approval requirements before you set your rehab schedule.
Parking is another Fan District reality. Most buildings have little or no off-street parking, and the city runs a residential permit program on many blocks, which matters to tenants and to rent levels.
A building with five to eight units is still residential for our DSCR programs, so it qualifies on the property's rent rather than your personal income. There are no W-2s or tax returns to collect, LLC borrowers are standard and the minimum credit score is 620. Loans start at $150,000 with no stated maximum, and 30-year terms are available.
The ratio is the combined monthly rent of every unit divided by the full monthly payment: principal, interest, taxes and insurance. The standard minimum is 1.0x, and sub-1.0 programs exist for buildings that fall a little short. Maximum LTV on 5-8 unit buildings can be lower than the 80% purchase and 75% cash-out ceilings that apply to smaller rentals; it varies by program.
Expect the appraiser to review the rent roll unit by unit and compare each rent with similar units nearby. Leases well above the local market can be questioned, and vacant units need a supportable rent figure, so a clean rent roll matters as much as the purchase price.
The City of Richmond reassesses property every year, so a recent sale price tends to show up in the assessment fairly quickly. Henrico and Chesterfield set their own rates and assessments, and the gap between city and county taxes can change the ratio on otherwise similar buildings.
Virginia charges a state recordation tax on deeds and deeds of trust, with an added local share, plus a grantor tax normally paid by the seller. Get a title estimate early so closing costs do not surprise you.
This example is illustrative and not a quote. An investor buys a seven-unit brick walk-up in the Fan for $1,150,000. The seven units rent for $1,250 each, for a combined $8,750 a month. Taxes are budgeted at $1,150 a month and insurance at $525.
At 75% LTV the loan is $862,000, estimated principal and interest is about $6,027 and the total payment is about $7,702, for a DSCR of about 1.14x. At 70% LTV the loan drops to $805,000, the payment to about $7,304 and the DSCR rises to about 1.20x. Because the city reassesses each year, taxes are budgeted on the purchase price rather than the seller's older bill.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Purchase price | $1,150,000 | $1,150,000 |
| Combined monthly rent | $8,750 | $8,750 |
| Loan amount | $862,000 | $805,000 |
| Estimated principal and interest | $6,027 | $5,629 |
| Taxes and insurance | $1,675 | $1,675 |
| Total monthly payment | $7,702 | $7,304 |
| DSCR | About 1.14x | About 1.20x |
Insurers look closely at electrical service, plumbing and roofs on early 1900s buildings. Older Fan buildings may still have original wiring in places or shared heating systems that raise questions.
Buildings near the James River, Shockoe Bottom and low parts of Manchester can be in mapped flood zones. Pull the flood map and get a quote before you commit.
VCU and the VCU Health medical campus drive steady demand in the Fan, Oregon Hill and Jackson Ward. Student buildings usually lease on an August cycle, while units near the hospital lease year-round to residents and nurses.
Virginia has no local rent control, so rents can move with the market. The Virginia Residential Landlord and Tenant Act sets notice and deposit rules you will need to follow.
Have these on hand when you request a quote.
Our investor loans are business-purpose loans on non-owner-occupied property. To get a quote, use the form below or call (877) 298-1001 with the address, units, current rents and price.
The LendingStreet team will check the ratio against a realistic tax and insurance budget and show what loan amount the rent supports. Investors comparing markets can also read our Virginia 5-8 unit DSCR page.
Yes. The city reassesses annually, so a sale price can show up in your taxes quickly. Budget on your purchase price.
Not the approval itself, but it can change renovation plans and timelines for exterior work.
Sometimes, because the county sets its own tax rate. Compare the actual tax bills.
A state recordation tax plus a local share on deeds and deeds of trust, and a grantor tax usually paid by the seller.
Yes, if it has 5-8 units and the leases support the payment. Bring the rent roll with lease dates so the August turnover is clear.
On our DSCR programs, 1 to 8 units is residential. Nine or more units is commercial and is covered on our multifamily pages.
No. A DSCR loan qualifies on the property's rent. We do not collect W-2s or tax returns. The credit score minimum is 620.
You can bring more cash to lower the loan amount, or look at a sub-1.0 DSCR program if the numbers are close.
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