San Antonio prices look friendly next to Austin, and small apartment buildings near downtown, the Pearl and the military bases rent steadily. The challenge, as in every Texas city, is the property tax bill, which can take a large bite out of the rent on a 5-8 unit building.
In short: LendingStreet finances 5-8 unit buildings across San Antonio and Bexar County 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. Budget taxes on the full appraised value with no homestead exemption, and get a realistic hail and wind insurance quote.
Tobin Hill, Monte Vista and Alamo Heights have older two-story buildings and large houses split into apartments. Southtown and King William add historic buildings near downtown, and Dignowity Hill and Government Hill on the east side have newer infill and renovated older stock.
Near the Medical Center and UTSA, 1970s and 1980s small buildings lease to hospital staff and students. Areas around Joint Base San Antonio, including Lackland and Fort Sam Houston, have small buildings that lease to service members and civilian workers.
| Area | Typical building | Tenant base |
|---|---|---|
| Tobin Hill and Monte Vista | Two-story buildings and conversions | Professionals near the Pearl |
| Southtown and King William | Historic small buildings | Downtown workers |
| Medical Center and UTSA | 1970s-80s walk-ups | Hospital staff and students |
| Near JBSA bases | Small garden buildings | Military and civilian base workers |
Texas has no state income tax, so counties, cities, school districts and special districts rely on property taxes. In San Antonio a building can be taxed by Bexar County, the city, the school district, the community college district, the hospital district and others.
Investors do not get homestead exemptions. The Bexar Appraisal District sets values each year, and a recent sale often pushes the next appraisal toward the price. Budget on the full combined rate applied to your purchase price, and protest if the value looks high.
Texas has no transfer tax and no mortgage tax, which keeps closing costs lower than in many states.
Five to eight units is the top of the residential range; nine or more units moves into commercial lending. Inside that range the loan is approved on what the building rents for. No W-2s, no tax returns, a 620 minimum score, LLC ownership allowed, $150,000 minimum loan size with no stated maximum, and 30-year terms available.
The test is simple: total rent from all units divided by principal, interest, taxes and insurance. Most programs look for 1.0x or better, and sub-1.0 programs can work when the numbers are close. Purchase leverage can reach 80% LTV and cash-out 75% on smaller rentals, but on 5-8 unit buildings the maximum is often lower and varies by program.
The rent roll does a lot of the work. The appraiser checks every unit's rent against comparable rentals, and income that looks out of line with the area gets a closer look. Vacant or down units need a realistic rent and a plan for getting them leased.
San Antonio gets damaging hail and spring storms, and premiums across Texas have risen. Many policies carry percentage-based wind and hail deductibles, so a roof claim can cost more than you expect.
Older buildings near creeks such as Olmos Creek and the San Antonio River can be in flood zones. Ask for roof age, flood determination and the deductible structure, not just the premium.
This example is illustrative and not a quote. An investor buys a seven-unit building in Tobin Hill for $1,050,000. The units rent for $1,150 each, for a combined $8,050 a month. Taxes are budgeted at $2,000 a month and insurance at $800.
A 75% LTV loan of $788,000 carries estimated principal and interest of about $5,510. Add taxes and insurance and the payment is about $8,310, a DSCR of about 0.97x. At 70% LTV, the $735,000 loan has a payment of about $7,939 and a DSCR near 1.01x. Taxes alone take about a quarter of the rent. At 75% LTV the building is just under 1.0x; at 70% it clears the minimum.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Purchase price | $1,050,000 | $1,050,000 |
| Combined monthly rent | $8,050 | $8,050 |
| Loan amount | $788,000 | $735,000 |
| Estimated principal and interest | $5,510 | $5,139 |
| Taxes and insurance | $2,800 | $2,800 |
| Total monthly payment | $8,310 | $7,939 |
| DSCR | About 0.97x | About 1.01x |
San Antonio has many local historic districts, including King William, Monte Vista and Dignowity Hill, where the Office of Historic Preservation reviews exterior changes. Plan renovation timelines around that.
The city requires permits for short-term rentals, but most 5-8 unit buildings are underwritten on 12-month leases. Texas does not allow local rent control.
Older buildings in Tobin Hill and Monte Vista may have window units and original wiring. Updating HVAC and electrical service can help both the insurance quote and tenant retention.
Military bases, the medical center, a growing downtown and the tourism economy create steady demand. Prices per unit are generally lower than in Austin or Dallas.
The tax line is the challenge. Investors who budget correctly and buy at the right price can still find buildings that cover the payment.
Buildings near the Pearl and Southtown command higher rents than the city average, while those near the bases often have lower prices and steady military demand.
A clean package gets a faster answer on a small apartment building.
LendingStreet makes business-purpose DSCR loans on non-owner-occupied rentals. Our investor loans are business-purpose loans on non-owner-occupied property, and we review 5-8 unit buildings across the San Antonio area.
Share the rent roll, the address and your target leverage in the form below or by phone at (877) 298-1001. We will size the loan at more than one LTV so you can see the tradeoff. Our Texas 5-8 unit DSCR page covers the statewide picture.
Investors do not get homestead exemptions, and several taxing units add up. Budget on the full combined rate.
No. Texas has no real estate transfer tax or mortgage tax.
Yes. Owners can protest with the Bexar Appraisal District each year.
Yes, if the building has 5-8 units and the rent supports the payment.
Not directly, but it can affect exterior renovation plans and timelines.
Eight units. Up to eight units fits our residential DSCR programs; nine or more is commercial multifamily.
No. The loan qualifies on the building's rent. There are no W-2s or tax returns, and the minimum credit score is 620.
Sometimes. Sub-1.0 DSCR programs are available, and putting more down is the other common fix.
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