Spokane has an unusual number of small, old apartment buildings. Browne's Addition, Cliff-Cannon, the lower South Hill and the blocks around downtown and Gonzaga are full of brick walk-ups and converted mansions with five to eight units, many built in the early 1900s when Spokane was booming. They are full of character, and full of owner-paid expenses.
In short: LendingStreet finances 5 to 8 unit residential buildings in Spokane with DSCR loans that qualify on the building's combined rent, not your personal income. Loans start at $150,000 with no stated maximum, the standard minimum DSCR is 1.0x and the minimum credit score is 620. Maximum LTV on 5-8 unit buildings can be lower than on 1-4 units and varies by program.
Browne's Addition, west of downtown, has the densest collection: brick walk-ups and large Victorian and Craftsman homes split into apartments. Cliff-Cannon and the lower South Hill have similar buildings on steeper streets. Logan, near Gonzaga, has smaller buildings that lease to students. North of the river, Emerson-Garfield and the Garland District have some 1960s and 1970s two-story buildings with simpler layouts.
Newer 5-8 unit buildings are appearing on infill lots as Spokane's zoning has opened up. They tend to have separate meters, modern heating and lower maintenance, which changes the expense picture completely.
This example is illustrative and not a quote. An investor buys a six-unit brick building in Browne's Addition for $780,000. Each one-bedroom rents for about $1,050, for gross rent of $6,300 a month. Taxes are about $680 a month and building insurance about $450. The building has a central boiler, so the owner pays heat, averaging about $600 a month over the year.
At 75% LTV the loan is $585,000, estimated principal and interest is about $3,991 and the total payment is about $5,121, a DSCR of about 1.23x. At 70% LTV the DSCR is about 1.30x.
Heat is not part of the DSCR payment, but it is part of the investor's cash flow. After the $600 average heating cost, the building still collects more than its payment at either loan size, with a thinner margin in winter months.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $585,000 | $546,000 |
| Estimated principal and interest | $3,991 | $3,725 |
| Taxes and insurance | $1,130 | $1,130 |
| Total monthly payment | $5,121 | $4,855 |
| DSCR at $6,300 gross rent | About 1.23x | About 1.30x |
We qualify on the combined rent from the rent roll and leases. Appraisers typically use both comparable sales and an income approach, which accounts for operating expenses like owner-paid heat and water. Because 5-8 unit buildings sit between residential and commercial, maximum LTV can be lower, reserves can be higher and some programs consider your experience.
Buildings with 9 or more units are commercial loans. See our multifamily page for those.
Early 1900s Spokane apartment buildings can have boilers, steam or hot-water radiators, original plumbing, older wiring and masonry that needs maintenance. Some have had units added or reconfigured over the decades, not always with permits.
Some older buildings have shared basements used for storage and laundry. Check that those areas are dry, safely wired and accessible, since appraisers and insurers both look at them.
Washington enacted a statewide limit on annual rent increases for many residential rentals in 2025, with exemptions that include newer buildings, along with longer notice requirements. Read the current rules before you build a rent-growth plan, and remember that a DSCR loan is sized on today's rent, not projected increases.
For older buildings, that means rent growth on existing tenants is limited, and value-add plans depend more on turnover and on renovating units as they become vacant. Underwrite the purchase on current rents and treat future increases as upside, not as part of the loan math.
Five or more units usually means a small commercial or package policy. Older brick buildings, especially with outdated wiring or a boiler, can be harder and more expensive to insure. Some carriers want electrical updates before they will write coverage. Get a quote before you remove contingencies, and include it in the ratio.
Buildings in a historic district may face review for exterior changes, which can affect window and masonry projects.
Buildings near Gonzaga and downtown often turn over in summer. A rent roll with several leases ending in May or August is normal. If a building has significant vacancy at purchase, a bridge loan can carry it through lease-up before a DSCR refinance.
The value-add plan on a Browne's Addition or Cliff-Cannon building usually starts with the systems: updating electrical, servicing or replacing the boiler, improving insulation and windows to cut owner-paid heat, and repairing masonry and roofs. Unit renovations follow as tenants move out.
Spreading the work over turnover keeps the rent roll strong enough to support the loan. Emptying several units at once lowers the rent we can count and can stall a refinance. If the plan is a heavy renovation of the whole building, a bridge or rehab loan followed by a DSCR loan is often the cleaner path.
Separating utilities, where the building and code allow it, can shift heating costs to tenants and improve cash flow over time, but conversion costs in an old building can be high. Price it carefully before you count on it.
Send the address, price, rent roll, leases and owner-paid expenses. We will run the ratio at the leverage the program allows. Use the form below or call (877) 298-1001. Our investor loans are business-purpose loans on non-owner-occupied property.
Buildings with 1 to 8 units qualify for our residential DSCR programs. Nine or more units is commercial.
It varies by program and is often lower than the 80% available on 1-4 unit purchases.
The DSCR payment includes principal, interest, taxes, insurance and any HOA. Heat is not in it, but it matters for cash flow and the appraisal.
It applies to many residential rentals, with exemptions including newer buildings. Review the current rules for your property.
Yes, though we count the rent the building supports. A bridge loan through lease-up is a common path.
Some programs consider it. It can affect leverage and reserves.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Yes. LLC borrowers are standard on our DSCR loans, and most investors buy 5-8 unit buildings in an entity.
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