Virginia Beach is mostly single-family homes, townhomes and large apartment complexes, so 5-8 unit buildings are less common than you might expect. Investors who want small apartment buildings in Hampton Roads often look in Norfolk's Ghent and Park Place, while the military keeps demand steady everywhere.
In short: LendingStreet finances 5-8 unit buildings in Virginia Beach, Norfolk, Chesapeake, Portsmouth and Hampton 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. Flood insurance and military turnover are the local issues to plan for.
In Virginia Beach, small apartment buildings are scattered near the Oceanfront, around Chesapeake Beach (Chic's Beach), Thalia and older parts of Kempsville and Pembroke. Most of the city's rental stock is larger complexes or single-family homes.
Norfolk has more small buildings: Ghent, Park Place, Colonial Place and Riverview have early 1900s brick walk-ups and converted houses. Portsmouth's Olde Towne and Park View, plus older parts of Hampton and Newport News, add more.
Five-to-eight unit buildings in Virginia Beach often come up as older beach-block buildings or small courtyard properties near Shore Drive. Because supply is thin, many investors buy in Norfolk and finance several properties across the region.
| Area | Typical building | Main local issue |
|---|---|---|
| Virginia Beach Oceanfront and Chic's Beach | Small buildings near the water | Flood zones and STR rules |
| Norfolk Ghent and Park Place | Brick walk-ups and conversions | Older systems and parking |
| Colonial Place and Riverview | Older buildings near the Lafayette River | Recurrent flooding |
| Portsmouth and Hampton | Lower-priced older buildings | Different city tax rates |
Naval Station Norfolk, NAS Oceana, Joint Expeditionary Base Little Creek-Fort Story and other installations make Hampton Roads one of the largest military areas in the country. Service members receive a housing allowance and often rent near their base.
Military tenants can move on short notice under federal law when they get orders, so turnover can be higher. Build that into your reserves.
Rents near bases often track the housing allowance for the local area, which changes each year. Units that fit a junior enlisted or junior officer budget tend to lease quickly.
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.
Hampton Roads faces recurrent tidal flooding and storm surge, and sea level rise is a long-term concern. Many areas near the Lafayette and Elizabeth rivers, Lynnhaven and the Oceanfront are in mapped flood zones.
Flood insurance is generally required in those zones and can be expensive. Get an elevation certificate and quotes early. Wind coverage also matters because of hurricane exposure.
Norfolk and Virginia Beach both have programs and long-range plans to address flooding, and some streets flood at high tide even without a storm. Visit the property at high tide if you can.
This example is illustrative and not a quote. An investor buys a six-unit brick walk-up in Norfolk's Ghent for $1,250,000. The units rent for $1,500 each, for a combined $9,000 a month. Taxes are budgeted at $850 a month and insurance at $600.
Financing 75% of the price gives a $938,000 loan. Estimated principal and interest comes to about $6,559, the full payment to about $8,009, and the ratio to about 1.12x. Dropping to 70% LTV, a $875,000 loan, brings the payment to about $7,568 and the ratio to about 1.19x. Insurance includes flood coverage. The ratio clears 1.0x at both leverage levels.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Purchase price | $1,250,000 | $1,250,000 |
| Combined monthly rent | $9,000 | $9,000 |
| Loan amount | $938,000 | $875,000 |
| Estimated principal and interest | $6,559 | $6,118 |
| Taxes and insurance | $1,450 | $1,450 |
| Total monthly payment | $8,009 | $7,568 |
| DSCR | About 1.12x | About 1.19x |
Virginia Beach, Norfolk, Chesapeake and the other cities are independent cities with their own tax rates and annual assessments. Compare actual bills, because rates differ.
Virginia charges a state recordation tax on deeds and deeds of trust, with a local add-on, plus a grantor tax normally paid by the seller.
Annual assessments mean a recent sale price tends to show up in the next assessment. Use your price, not the seller's bill.
Norfolk sets a different real estate tax rate from Virginia Beach, and both cities reassess every year. Check the current rate for the city the building is in and apply it to your purchase price.
Virginia Beach limits short-term rentals to certain areas, mainly overlay districts such as Sandbridge and parts of the Oceanfront, with permits required. Most 5-8 unit buildings are underwritten on 12-month leases.
Check zoning before counting on nightly income.
Outside those overlay areas, short-term rentals are generally not allowed without approvals. Norfolk has its own permit rules.
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 Virginia 5-8 unit DSCR page.
Not very. Many investors look in Norfolk, Portsmouth and Hampton for small apartment buildings.
If the building is in a mapped flood zone, yes. Much of Hampton Roads is low-lying.
Federal law lets service members end leases when they get orders. Plan reserves for turnover.
Only in areas where STRs are allowed with permits. Most buildings are financed on long-term leases.
Yes. We finance 5-8 unit buildings across Hampton Roads.
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.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.