Tulsa's Midtown is full of 1920s to 1950s brick apartment buildings that sit between houses on tree-lined streets. Prices are low and rents steady, but in Oklahoma the insurance quote, driven by hail and tornado risk, often matters more than the tax bill.
In short: LendingStreet finances 5-8 unit buildings in Tulsa, Broken Arrow, Owasso and the rest of the metro 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. Get a realistic wind and hail quote first, and remember that Oklahoma's valuation cap resets when you buy.
Midtown, including the areas around Cherry Street, Swan Lake, Brookside and Maple Ridge, has many brick walk-ups and older fourplexes, along with some five-to-eight unit buildings. Kendall-Whittier near the University of Tulsa and the Pearl District east of downtown have lower-priced older stock that has seen renovation.
Broken Arrow, Owasso, Jenks and Bixby have newer small buildings at higher prices. North and west Tulsa offer the lowest prices per unit.
| Area | Typical building | Tenant base |
|---|---|---|
| Cherry Street and Swan Lake | 1920s-50s brick walk-ups | Young professionals |
| Brookside and Maple Ridge | Well-kept older buildings | Professionals and hospital staff |
| Kendall-Whittier and Pearl District | Renovated older stock | Students and downtown workers |
| Broken Arrow and Owasso | Newer small buildings | Families and commuters |
Oklahoma has some of the highest property insurance costs in the country because of hail, wind and tornadoes. Many policies have percentage-based wind and hail deductibles.
Carriers focus on roof age and material. A newer roof, ideally impact-resistant, can lower the premium. Get a full-building quote before you make an offer.
Buildings near Mingo Creek, Joe Creek and the Arkansas River can be in flood zones. Tulsa has invested heavily in flood control since the 1980s, but check the map for each address.
Hail claims can also lead carriers to non-renew a policy after a loss. Ask the seller for the claim history and how recently the roof was replaced.
A building with five to eight units is still residential for our DSCR programs, so it qualifies on the property's rent rather than your personal income. There are no W-2s or tax returns to collect, LLC borrowers are standard and the minimum credit score is 620. Loans start at $150,000 with no stated maximum, and 30-year terms are available.
The ratio is the combined monthly rent of every unit divided by the full monthly payment: principal, interest, taxes and insurance. The standard minimum is 1.0x, and sub-1.0 programs exist for buildings that fall a little short. Maximum LTV on 5-8 unit buildings can be lower than the 80% purchase and 75% cash-out ceilings that apply to smaller rentals; it varies by program.
Expect the appraiser to review the rent roll unit by unit and compare each rent with similar units nearby. Leases well above the local market can be questioned, and vacant units need a supportable rent figure, so a clean rent roll matters as much as the purchase price.
Oklahoma limits annual increases in taxable value to 5% for most non-homestead property, but the cap resets when a property sells. Tulsa County applies an assessment ratio to fair cash value, and the millage depends on the school district and other taxing bodies.
Budget taxes on your purchase price. Oklahoma charges a documentary stamp tax on deeds, usually paid by the seller.
County assessors also mail notices of value changes, and owners can appeal to the county board of equalization within a short window. Watch for the notice after your purchase.
This example is illustrative and not a quote. An investor buys a six-unit brick building near Cherry Street for $640,000. The units rent for $1,000 each, for a combined $6,000 a month. Taxes are budgeted at $683 a month and insurance at $800.
At 75% LTV the loan is $480,000, estimated principal and interest is about $3,356 and the total payment is about $4,840, for a DSCR of about 1.24x. At 70% LTV the loan drops to $448,000, the payment to about $4,616 and the DSCR rises to about 1.30x. Insurance costs more than taxes on this building, which is typical in Oklahoma. The ratio is still comfortable.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Purchase price | $640,000 | $640,000 |
| Combined monthly rent | $6,000 | $6,000 |
| Loan amount | $480,000 | $448,000 |
| Estimated principal and interest | $3,356 | $3,132 |
| Taxes and insurance | $1,483 | $1,483 |
| Total monthly payment | $4,840 | $4,616 |
| DSCR | About 1.24x | About 1.30x |
Many Midtown buildings have original hardwood floors and steel casement windows, plus older wiring, plumbing and HVAC. Window units are still common in some older buildings.
Foundation movement is common in Oklahoma clay soils. Look for cracks and doors that stick, and get an inspection.
Midtown buildings with original details can rent at a premium once kitchens, baths and HVAC are updated. Investors often renovate units on turnover and refinance later on the higher rent roll.
Energy companies, aerospace maintenance at the airport, hospitals and the University of Tulsa support rental demand. The Tulsa Remote program has brought remote workers to the city, many of whom rent in Midtown and downtown.
Oklahoma does not allow local rent control, and state landlord-tenant law sets notice and deposit rules.
Rents in Midtown buildings near Cherry Street and Brookside are higher than in the rest of the city, but so are prices. North and west Tulsa buildings often produce stronger ratios with more management work.
Have these on hand when you request a quote.
Our investor loans are business-purpose loans on non-owner-occupied property. To get a quote, use the form below or call (877) 298-1001 with the address, units, current rents and price.
The LendingStreet team will check the ratio against a realistic tax and insurance budget and show what loan amount the rent supports. Investors comparing markets can also read our Oklahoma 5-8 unit DSCR page.
Hail, wind and tornado risk. Roof age and material affect the premium.
Not at purchase, because it resets on sale. It limits increases in later years.
No. Oklahoma preempts local rent control.
Yes. We finance 5-8 unit buildings across the Tulsa metro.
It can affect the appraisal and insurance. Get an inspection.
On our DSCR programs, 1 to 8 units is residential. Nine or more units is commercial and is covered on our multifamily pages.
No. A DSCR loan qualifies on the property's rent. We do not collect W-2s or tax returns. The credit score minimum is 620.
You can bring more cash to lower the loan amount, or look at a sub-1.0 DSCR program if the numbers are close.
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