Des Moines is a market where a modest purchase price can still carry real rent, which is why so many investors buy here. The details that move a DSCR file are local: a property tax bill that is paid in arrears, a city rental certificate, and houses that are often 80 to 100 years old.
In short: LendingStreet finances 1-8 unit rentals across the Des Moines metro with DSCR loans that qualify on the property's rent, not your W-2s or tax returns. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV, and LLC borrowers are standard. In Des Moines the rent usually clears the 1.0x standard minimum when the tax and insurance lines are budgeted correctly.
Inside the city, Beaverdale is known for its brick homes and steady family tenants, while the Drake neighborhood has older two-and-a-half story houses, many split into duplexes, close to the university. Highland Park and Oak Park on the north side offer some of the lowest entry prices in the metro, and the south side has postwar bungalows and ranches on larger lots.
The suburbs are a different product. Ankeny, Johnston, Urbandale, Clive, West Des Moines, Waukee, Grimes and Altoona have newer homes and townhomes that lease to households working at the area's insurance, finance and state government employers. Prices are higher there, and so are tenant expectations.
| Area | Typical housing | What to check |
|---|---|---|
| Beaverdale, Merle Hay | 1920s-1950s brick and frame homes | Basement moisture, sewer line |
| Drake, Sherman Hill | Older houses, converted duplexes, Victorians | Unit legality, historic district rules |
| Highland Park, Oak Park, south side | Bungalows and ranches at lower prices | Loan size vs the $150,000 minimum |
| Ankeny, Waukee, Grimes, Johnston | Newer single-family and townhomes | HOA leasing rules, new-build tax bills |
DSCR is monthly rent divided by the monthly housing payment: principal and interest, property taxes, insurance and any HOA dues. A 1.0x ratio means the rent covers the payment. Our standard minimum is 1.0x, and sub-1.0 programs exist for files that come in just under.
For a purchase, we use the lease in place or a market rent estimate from the appraiser. For a refinance, we look at the current lease. Utilities you pay as the landlord are not in the formula, but they still come out of your pocket, so know who pays gas, electric and water before you buy.
This example is illustrative and not a quote. An investor buys a three-bedroom Beaverdale home for $235,000 that leases for $1,850 a month. Taxes are budgeted at $375 a month and insurance at $135.
At 80% LTV the loan is $188,000, and estimated principal and interest is about $1,282. The full payment is about $1,792, for a DSCR of about 1.03x. At 75% LTV the loan drops to $176,250, the payment to about $1,712 and the ratio rises to about 1.08x, at the cost of $11,750 more cash at closing.
| Item | 80% LTV | 75% LTV |
|---|---|---|
| Loan amount | $188,000 | $176,250 |
| Estimated principal and interest | $1,282 | $1,202 |
| Taxes and insurance | $510 | $510 |
| Total monthly payment | $1,792 | $1,712 |
| DSCR at $1,850 rent | About 1.03x | About 1.08x |
Iowa property taxes are paid in arrears, in two installments a year. When you buy, the seller typically credits you for taxes that have built up but are not yet due. That credit is not extra money; it covers a bill you will pay soon, so make sure the escrow is set up to handle it.
Iowa also revalues residential property every two years, in odd-numbered years. The City of Des Moines has its own assessor, while most suburbs are valued by the Polk County, Dallas County or Warren County assessor. If you buy just before a revaluation, the next bill may be higher than the seller's. Look up the parcel and budget on a realistic figure, not last year's.
The City of Des Moines requires residential rentals to be registered and inspected to hold a rental certificate. Inspectors look at items such as smoke detectors, egress windows from sleeping rooms, handrails, electrical hazards and heating. Suburbs have their own codes and some run their own rental programs.
Ask the seller for the current certificate and any open violations before closing. If the property has never been registered, budget time and repair money to bring it into compliance. Confirm current fees and inspection cycles with the city.
Much of the city's rental stock was built before 1950. Lenders and insurers notice roof age, old wiring, galvanized plumbing, and basements that take on water in spring. Iowa's hail and windstorms make roof condition one of the biggest drivers of the premium.
Homes near the Des Moines and Raccoon rivers or along creeks such as Walnut Creek and Fourmile Creek may sit in mapped flood zones. Check the FEMA map early; required flood coverage belongs in your ratio.
Des Moines has a good supply of side-by-side and up-down duplexes, plus some triplexes and fourplexes near Drake, Sherman Hill and downtown. These qualify on the combined rent of all units. Make sure each unit is legal and registered; an attic unit added without permits can be left out of the rent.
Buildings with five to eight units are still residential DSCR loans, though maximum LTV varies by program. See our Des Moines 5-8 unit page for those details.
These are the core DSCR terms for a Des Moines rental.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, rent and the leverage you want through the form below, or call (877) 298-1001. We will run the ratio on realistic taxes and insurance and come back with options. Our Iowa DSCR page covers the rest of the state.
Yes. The loan qualifies on the property's rent compared with its payment. We do not ask for W-2s or tax returns, and you can close in an LLC.
Iowa taxes are paid in arrears, so the seller credits you for taxes that have accrued but are not yet due. You will use that money to pay the next installment.
The lender will not usually require it at closing, but the city requires it to rent the property. Check the status before you buy so repairs do not delay your first tenant.
Yes, $150,000. Some lower-priced homes in Highland Park, Oak Park and the south side fall below that at normal leverage, so those are often financed as part of a larger purchase or a portfolio.
Yes. Newer suburban homes qualify the same way. Check HOA leasing rules and budget taxes on your purchase price, not the builder's lot value.
You can lower the loan amount, or ask about our sub-1.0 DSCR programs. Many Des Moines files clear the minimum once taxes and insurance are budgeted accurately.
On some programs, using projected revenue, if the property can legally operate as a nightly rental under city rules. Most Des Moines rentals are financed on long-term leases.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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.