Rochester has an affordable supply of small apartment buildings, from divided houses on Park Avenue to brick walk-ups in the South Wedge. For investors, the city's certificate of occupancy and lead inspection rules are as important as the rent roll.
In short: LendingStreet finances 5 to 8 unit rental buildings in Rochester with DSCR loans that qualify on the building's rent, not your income. LLC borrowers are standard, loans start at $150,000 with no stated maximum and the standard minimum DSCR is 1.0x. In Rochester, high combined property taxes, the rental certificate of occupancy and lead inspections are the items to check first.
The Park Avenue neighborhood and the Neighborhood of the Arts have large early 1900s houses divided into apartments and brick walk-ups. The South Wedge, Swillburg and Highland Park have smaller buildings near downtown and the University of Rochester. The 19th Ward, Maplewood and Upper Monroe offer more units for the money.
Renters include students and staff at the University of Rochester and RIT, hospital workers at Strong Memorial and Rochester General, and downtown employees.
Many buildings are a century old, with original systems and frequent turnover in the student areas.
| Area | Typical 5-8 unit stock | What to check |
|---|---|---|
| Park Avenue, Neighborhood of the Arts | Divided houses, brick walk-ups | Certificate of occupancy |
| South Wedge, Swillburg | Small brick buildings | Parking, unit layouts |
| 19th Ward, Maplewood | Larger houses and multi-families | Condition, lead |
| Upper Monroe, Highland Park | Mixed small buildings | Rent vs tax bill |
The ratio is simple: total monthly rent divided by the monthly payment, where the payment includes principal, interest, taxes, insurance and any HOA dues. A 1.0x ratio means the rent exactly covers the payment, which is the standard minimum. Programs below 1.0x exist for buildings with a thin margin.
Five to eight units still counts as residential under our programs, which is why you can finance one with no W-2s or tax returns and an LLC as the borrower. Expect leverage that varies by program: up to 80% LTV on a purchase on some programs, often less on 5-8 units and larger balances, and up to 75% on a cash-out. Loans start at $150,000 with no stated maximum and a 620 minimum credit score. Nine units and up is a commercial loan.
Rochester's rents are modest, while its combined tax bills are high, so taxes take a large share of the rent. We size the loan on the current bill, not a guess.
Rochester property owners pay city, school and Monroe County taxes, and the combined effective rate is high compared with many parts of New York. Use the current bill and check whether a reassessment is coming.
New York charges a mortgage recording tax on the loan amount, paid by the borrower at closing. Outside New York City it is roughly 1% of the loan in many counties, so it adds real cash to your closing costs. The state transfer tax is customarily paid by the seller. Attorneys handle most New York closings.
Rochester requires a certificate of occupancy for rental properties, renewed periodically after an inspection. The city also includes lead paint inspections for most pre-1978 rentals in that process. A building without a current certificate can face fines and enforcement, so ask the seller for it.
The 2019 Housing Stability and Tenant Protection Act applies statewide. It limits security deposits to one month's rent and restricts application fees and late fees. It also lets cities opt into rent stabilization under the Emergency Tenant Protection Act for buildings with six or more units built before 1974, after declaring a housing emergency. A six, seven or eight unit pre-1974 building is exactly the kind of property that law reaches. The 2024 Good Cause Eviction law applies in New York City and lets other cities opt in. Check Rochester's current status under both laws.
This example is illustrative and not a quote. An investor buys a 6-unit building on Park Avenue for $600,000. The units rent for about $1,100 each, or $6,600 a month. Taxes are budgeted at $1,550 a month and insurance at $500.
At 75% LTV, the loan is $450,000. On a 30-year fixed, principal and interest is about $3,146, the full payment with taxes and insurance is about $5,196, and DSCR is about 1.27x. At 70% LTV, the loan is $420,000, principal and interest is about $2,937, the payment is about $4,987 and DSCR is about 1.32x.
Both loans clear 1.0x, but taxes take more than a fifth of the rent, which is typical in Rochester. The 70% loan needs about $30,000 more at closing, plus the mortgage recording tax on the loan.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Gross monthly rent | $6,600 | $6,600 |
| Loan amount | $450,000 | $420,000 |
| Principal and interest | $3,146 | $2,937 |
| Property taxes | $1,550 | $1,550 |
| Insurance | $500 | $500 |
| Total monthly payment | $5,196 | $4,987 |
| DSCR | About 1.27x | About 1.32x |
Rochester's winters, older housing stock and lead rules mean condition drives cost. Look at roofs, heating, porches and paint, and confirm that the certificate of occupancy covers the number of units you are buying.
Have these ready when you request a quote, and the review moves quickly.
LendingStreet finances business-purpose DSCR loans on non-owner-occupied rentals throughout Rochester and Monroe County. Our investor loans are business-purpose loans on non-owner-occupied property.
Use the form below or call (877) 298-1001 with the address, price, rent roll and how much you want to borrow. We check the ratio at more than one loan amount, on the taxes and insurance you will actually pay, and send back clear options. Buildings with vacancies or deferred work may fit a short-term bridge loan before a DSCR refinance.
Yes. Rochester requires one for rental properties, renewed after periodic inspections that include lead checks on most pre-1978 units.
Combined city, school and county taxes are high relative to rents, so they take a large share of the payment. Use the actual bill.
Yes. Security deposits are limited to one month's rent statewide, and late fees and application fees are restricted.
Not with us. Our residential DSCR programs cover 1 to 8 units, so a 6-unit building qualifies on rent like any other rental. Nine units and up is financed as commercial.
Yes. The building's rent is what qualifies the loan. We look at the rent roll, leases, credit (620 minimum) and reserves, not W-2s or tax returns.
We look at a smaller loan, a sub-1.0 DSCR program or a bridge loan while you raise rents or fill vacancies, with a DSCR refinance once the building supports it.
Usually not right away. A building with major repairs or many vacancies often starts on a short-term bridge loan, then refinances into a DSCR loan once units are rented and the ratio works.
No. Our investor loans are business-purpose loans on non-owner-occupied property. Every unit should be rented to tenants.
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