Wichita has a healthy supply of small apartment buildings: two-story brick sixplexes and eightplexes from the 1950s through the 1970s, many in Midtown, College Hill, near Wichita State and along older arterial streets. They tend to trade among local investors at prices that still produce real cash flow.
In short: LendingStreet finances 5 to 8 unit residential buildings in Wichita with DSCR loans that qualify on the building's combined rent. Loans start at $150,000 with no stated maximum, the standard minimum DSCR is 1.0x and the minimum credit score is 620, with no W-2s or tax returns. Maximum LTV on 5-8 unit buildings can be lower than on 1-4 units and varies by program.
Most Wichita 5-8 unit buildings are simple, durable designs: brick or block construction, one- and two-bedroom units, off-street parking behind the building and a shared laundry room. Many were built when Wichita's aircraft plants were expanding and have been owned by the same family for decades.
You will also find converted older houses with five or six units in Riverside and Midtown, and a smaller number of newer townhome-style buildings in the suburbs. Each has a different expense profile.
This example is illustrative and not a quote. An investor buys an eight-unit brick building near Wichita State for $620,000. Each one-bedroom unit rents for about $725, for gross rent of $5,800 a month. Taxes, using the 11.5% residential assessment ratio and an assumed mill levy, are about $743 a month, and building insurance is about $520. The owner also pays about $350 a month for water and trash.
At 75% LTV the loan is $465,000, estimated principal and interest is about $3,172, and the payment including taxes and insurance is about $4,435, a DSCR of about 1.31x. At 70% LTV the DSCR is about 1.37x.
The DSCR does not count the owner-paid utilities, but the investor's cash flow does. After the $350 utility bill, the building still clears its payment comfortably at either loan size.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Loan amount | $465,000 | $434,000 |
| Estimated principal and interest | $3,172 | $2,961 |
| Taxes and insurance | $1,263 | $1,263 |
| Total monthly payment | $4,435 | $4,223 |
| DSCR at $5,800 gross rent | About 1.31x | About 1.37x |
We qualify on the combined rent of all units, verified with a rent roll and leases. Appraisers usually weigh comparable sales of similar buildings and an income approach. Because a 5-8 unit building sits closer to commercial property, maximum LTV can be lower, reserves can be higher, and some programs consider your experience with multiple units.
Buildings with 9 or more units are commercial loans. If you are looking at a larger complex, see our multifamily page.
Bring a current rent roll that lists each unit, its rent, lease end date and deposit, plus copies of the leases. A rent roll that matches the leases and the bank deposits makes underwriting move quickly.
Many older Wichita buildings have one water meter and sometimes a central boiler, so the owner pays water, sewer, trash and occasionally heat. Kansas summers also mean window or through-wall air conditioners in many units, which tenants pay to run but owners replace.
Ask for 12 to 24 months of owner-paid utility bills before you buy. A building that looks strong on gross rent can look very different after utilities, and the appraiser's income approach will account for them.
Five or more units usually moves a building onto a small commercial or package policy. In hail country, these policies can carry significant wind and hail deductibles. Get a quote early, ask whether the roof is covered at replacement cost or actual cash value, and include the premium in your ratio.
If the building is near the Arkansas River or a local creek, check the flood map, since flood insurance would add to the payment.
Older Wichita buildings can also have trees overhanging roofs and parking lots, which insurers and appraisers notice. Trimming and drainage work is inexpensive compared with what storm damage can cost.
Many Wichita 5-8 unit buildings change hands when a long-time owner retires. Rents in those buildings are often below market, leases may be month-to-month, and records may be on paper. That can be an opportunity, but the rent we count is what the building actually supports today.
If the rents are far below market or units are empty, a bridge loan can fund the purchase and a DSCR refinance can follow once the building is leased at market rents.
Kansas law does not permit local rent control, and landlords follow the Kansas Residential Landlord and Tenant Act. Wichita enforces property maintenance codes, and buildings with complaints can face inspections and repair orders. If you are adding units or changing a building's use, permits run through MABCD.
The most common improvement plan on a Wichita eightplex is simple: renovate units as they turn, add in-unit or upgraded shared laundry, sub-meter or bill back water where leases and local rules allow, and bring rents up to market over a year or two. Exterior work such as new windows, parking lot resurfacing and roof replacement helps both rent and insurance.
Plan renovations so the rent roll stays strong enough to support the loan. Taking several units offline at once lowers the rent we can count on a refinance. If the plan is a heavy renovation of the whole building, a bridge or rehab loan first and a DSCR loan afterward is often the cleaner sequence.
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 lending.
It varies by program and is often lower than the 80% available on 1-4 unit purchases.
The DSCR compares rent to principal, interest, taxes, insurance and any HOA. Utilities are not in that payment, but they matter for your cash flow and for the appraisal.
Yes, though we count the rent the building supports. Converting to 12-month leases at market rent can strengthen a later refinance.
Some programs consider it, and it can affect leverage and reserves. It is not always required.
No. Kansas law does not allow local rent control.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Yes. A blanket portfolio loan can include 5-8 unit buildings alongside smaller rentals, as long as each property is 1-8 units and you have five or more properties in total.
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