St. Louis is a brick city, and its south side is full of four-families and small apartment buildings built a century ago. Prices per unit are low, Missouri has no transfer tax, and many buildings cover the payment comfortably.
In short: LendingStreet finances 5 to 8 unit rental buildings in St. Louis 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 St. Louis, check whether the building is in the City or the County, the city's occupancy and inspection rules and the insurance quote on an older brick building.
South city neighborhoods such as Tower Grove South, Shaw, Bevo Mill, Dutchtown and Benton Park have blocks of brick four-families and small apartment buildings, many with five to eight units. Soulard and Lafayette Square have historic brick buildings at higher prices. The Central West End and Skinker-DeBaliviere have larger walk-ups near Washington University and the BJC medical campus.
The City of St. Louis is an independent city, separate from St. Louis County, with its own taxes, rules and inspections.
North city neighborhoods offer the lowest prices but more vacancy and condition risk.
| Area | Typical 5-8 unit stock | What to check |
|---|---|---|
| Tower Grove South, Shaw | Brick multi-families and walk-ups | Rising prices, parking |
| Bevo Mill, Dutchtown | Brick buildings at lower prices | Condition, tenant base |
| Soulard, Lafayette Square, Benton Park | Historic brick buildings | Historic district rules |
| Central West End | Larger walk-ups near the medical campus | Higher prices per unit |
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.
St. Louis rents are moderate, but low prices mean many buildings cover the payment with room. We underwrite actual leases and a market rent estimate for vacant units.
City of St. Louis property taxes are based on assessed value, which the city resets every two years. Use the current bill and check whether a reassessment year is coming.
Missouri is one of the few states with no real estate transfer tax, which keeps closing costs lower than in most of the country. Buyers pay title, recording and closing fees plus prepaid taxes and insurance. Missouri law also blocks cities from adopting rent control.
The City of St. Louis has occupancy permit and inspection rules for rental housing, including when new tenants move in. Confirm the current requirements with the city and budget time for inspections between tenants.
Many south city neighborhoods are historic districts with rules on exterior changes, such as windows and masonry. Check before you plan renovations.
St. Louis County municipalities each have their own occupancy and inspection rules, so a building just over the city line may work differently.
This example is illustrative and not a quote. An investor buys a 6-unit brick building in Tower Grove South for $720,000. The units rent for about $1,050 each, or $6,300 a month. Taxes are budgeted at $850 a month and insurance at $550.
At 75% LTV, the loan is $540,000. On a 30-year fixed, principal and interest is about $3,776, the full payment with taxes and insurance is about $5,176, and DSCR is about 1.22x. At 70% LTV, the loan is $504,000, principal and interest is about $3,524, the payment is about $4,924 and DSCR is about 1.28x.
Both loans clear 1.0x. Because Missouri has no transfer tax, the cash to close is mostly down payment, title and prepaid items. The 70% loan needs about $36,000 more down.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Gross monthly rent | $6,300 | $6,300 |
| Loan amount | $540,000 | $504,000 |
| Principal and interest | $3,776 | $3,524 |
| Property taxes | $850 | $850 |
| Insurance | $550 | $550 |
| Total monthly payment | $5,176 | $4,924 |
| DSCR | About 1.22x | About 1.28x |
St. Louis brick buildings are durable, but century-old masonry needs tuckpointing, and flat roofs need regular care. Missouri's hail and severe storms affect insurance quotes and deductibles.
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 the City of St. Louis and St. Louis 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.
No. Missouri is one of the few states without one, which keeps closing costs lower.
Yes. The City is separate from the County, with its own taxes, occupancy rules and inspections. County towns each have their own rules too.
Through insurance. Hail and wind deductibles and premiums are part of the payment, so get a quote early.
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.
Up to 80% on a purchase on some programs and up to 75% on a cash-out, but 5-8 unit buildings often carry lower maximums. The exact figure varies by program and by how strongly the rent covers the payment.
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.
Yes, up to 75% LTV on cash-out, depending on the program, as long as the building's rent covers the new payment at the program minimum. How long you need to own it first varies by program.
No. Our investor loans are business-purpose loans on non-owner-occupied property. Every unit should be rented to tenants.
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