Salt Lake City has a quiet supply of small brick walk-ups from the 1920s through the 1960s, tucked between houses in Central City, Liberty Wells and the Avenues. Utah's tax treatment of long-term rentals and its lack of a transfer tax make it simpler to model than most western cities.
In short: LendingStreet finances 5-8 unit buildings in Salt Lake City and nearby cities 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. Long-term rentals can often qualify for Utah's primary residential exemption, which lowers the tax line, while seismic risk can affect insurance.
Central City and the blocks east of downtown have brick walk-ups and older houses split into units. The Avenues have historic buildings on steep streets, Liberty Wells and Ballpark have more affordable stock near the TRAX light rail line, and Sugar House mixes small buildings with new mid-rise apartments.
West of I-15, Rose Park and Glendale have lower prices and older small buildings. Nearby South Salt Lake, Murray, Millcreek and West Valley City add more options.
| Area | Typical building | Tenant base |
|---|---|---|
| Central City | 1920s-50s brick walk-ups | Downtown and hospital workers |
| The Avenues | Historic buildings and conversions | University of Utah staff and professionals |
| Liberty Wells and Ballpark | Small older buildings near TRAX | Working households |
| Rose Park and Glendale | Lower-priced small buildings | Long-term local tenants |
Utah taxes a primary residence at 55% of its value through a residential exemption. Long-term rentals where tenants live full time can generally qualify, because the property is someone's primary residence. Short-term rentals do not. The county may ask for a signed declaration confirming how the units are used.
Salt Lake County reassesses annually. Confirm the exemption is on the account after you buy, because a missing exemption can raise the tax bill sharply and lower your ratio.
Our DSCR programs treat 5-8 units as residential. Qualification runs on rent, not on pay stubs or tax returns, and most investors close in an LLC. The floor is a 620 credit score, loan sizes begin at $150,000 with no stated cap, and 30-year terms are available.
Underwriting divides the building's total monthly rent by the monthly payment including taxes and insurance. A 1.0x result is the usual minimum, with sub-1.0 options on some programs. Leverage tops out at 80% LTV on purchases and 75% on cash-out for smaller rentals, and it often sits lower on 5-8 unit properties and larger balances, so expect it to vary by program.
On a building this size, the appraisal leans on the rent roll. Each unit's rent is compared with nearby rentals, so above-market leases or several vacant units can pull the supported income down. Bring leases and a clear note on any unit that is empty or under renovation.
Utah has no real estate transfer tax and no state mortgage tax, so closing costs are mostly title, recording and lender fees.
Salt Lake City requires a business license for rental properties. Landlords who complete the city's landlord training and meet other conditions can get a reduced fee through its Landlord/Tenant Initiative Program. Budget for the license and check whether the building is in a historic district before planning exterior changes.
This example is illustrative and not a quote. An investor buys a seven-unit 1950s brick walk-up in Central City for $1,500,000. The units rent for $1,400 each, for a combined $9,800 a month. Taxes are budgeted at $700 a month and insurance at $500.
Financing 75% of the price gives a $1,125,000 loan. Estimated principal and interest comes to about $7,866, the full payment to about $9,066, and the ratio to about 1.08x. Dropping to 70% LTV, a $1,050,000 loan, brings the payment to about $8,542 and the ratio to about 1.15x. Taxes assume the residential exemption stays on the account. Without it the tax line would rise sharply and the ratio would drop.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Purchase price | $1,500,000 | $1,500,000 |
| Combined monthly rent | $9,800 | $9,800 |
| Loan amount | $1,125,000 | $1,050,000 |
| Estimated principal and interest | $7,866 | $7,342 |
| Taxes and insurance | $1,200 | $1,200 |
| Total monthly payment | $9,066 | $8,542 |
| DSCR | About 1.08x | About 1.15x |
The Wasatch Fault runs along the east side of the valley, and the 2020 Magna earthquake damaged older brick buildings in the area. Unreinforced masonry walk-ups are common in Salt Lake City and can face higher premiums or carrier limits.
Earthquake coverage is usually separate and optional. Ask your insurance agent about seismic retrofits that might lower the premium, and get a full-building quote early.
Older walk-ups may also have original steam or hot water heating and limited parking. Tenants near TRAX and downtown often accept that, but buildings in car-dependent areas need parking to lease well.
The University of Utah, the hospitals on the east bench, downtown offices and a strong tech sector in the south valley keep rental demand steady. Population growth has outpaced construction for years.
Small older buildings near TRAX and bus lines lease well because many tenants want to avoid long commutes. Parking is still a plus for most tenants.
Newer apartment towers downtown and in Sugar House compete for higher-income renters, which can cap rents at the top of the market. Older walk-ups usually compete on price, so a building with updated kitchens and in-unit or on-site laundry tends to hold tenants longer.
Pulling these together up front saves a round of follow-up questions.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, unit count, rent roll and the price or estimated value through the form below, or call (877) 298-1001.
We run the ratio on realistic taxes and insurance, test it at a few loan amounts and come back with options. For statewide rules, see our Utah 5-8 unit DSCR page.
Generally yes, when tenants live there as their primary residence. Short-term rentals do not. Confirm with the Salt Lake County Assessor.
No. Utah has no real estate transfer tax.
Yes. The city requires one, with a lower fee available through its landlord program. Check current requirements.
It can be, because of seismic risk. Get a quote early and ask about retrofits.
Yes. We finance 5-8 unit buildings across Salt Lake County.
Yes. Our residential DSCR programs cover 1 to 8 units. Buildings with 9 or more units are financed as commercial.
The minimum is 620. Income documents are not required, because the loan is approved on the building's rent.
Sub-1.0 DSCR programs exist. A larger down payment also lowers the payment and can lift the ratio over 1.0x.
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