Reno's rental demand has grown with the industrial parks east of town, the University of Nevada, Reno, and a steady flow of people moving in from California. Home prices rose with it, so the property type you buy decides whether the rent can carry a DSCR loan.
In short: LendingStreet offers DSCR loans on 1-8 unit rentals in Reno, Sparks and the rest of Washoe County, qualified on the property rent with no W-2s or tax returns. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV and cash-out up to 75% LTV, with a 1.0x standard minimum DSCR and a 620 minimum credit score. LLC borrowers are standard.
Older Reno, meaning Midtown, the Wells Avenue district, Newlands and the streets around the university, holds most of the city's small multi-family stock: duplexes, triplexes and fourplexes built from the 1940s through the 1970s, plus a scattering of older houses with back units. Sparks has its own older core near Victorian Avenue and a large supply of newer single-family homes in Wingfield Springs and Spanish Springs.
South Reno, including South Meadows, Damonte Ranch and Double Diamond, has newer subdivisions and townhomes that rent to professionals. The North Valleys, including Stead, Lemmon Valley and Cold Springs, offer lower prices and longer commutes, and many workers at the industrial center in Storey County live in Sparks and the North Valleys.
| Area | Typical rental | What to check |
|---|---|---|
| Midtown, Wells Avenue, near UNR | Duplexes to fourplexes, older houses | Unit legality, parking, older electrical |
| Old Southwest, Newlands | Older single-family and small multi-family | Trees and roofs, Truckee River flood maps |
| Sparks, Spanish Springs | Newer single-family homes | HOA leasing rules, commute to industrial jobs |
| South Meadows, Damonte Ranch | Newer homes and townhomes | HOA dues, special assessments |
| North Valleys | Lower-priced single-family | Commute, flood and drainage in valley areas |
This example is illustrative and not a quote. A single-family home in Sparks priced at $520,000 that rents for $2,650 needs a loan of $390,000 at 75% LTV. Estimated principal and interest is about $2,660, and with taxes and insurance the payment is about $3,035, for a DSCR of about 0.87x.
A fourplex in older Reno priced at $820,000 with four units at $1,450 earns $5,800 a month. At 75% LTV the loan is $615,000 and the payment about $4,865, for a DSCR of about 1.19x. That gap explains why so many Reno DSCR borrowers focus on two- to four-unit buildings, or put more money down on single-family homes.
| Item | Sparks single-family | Reno fourplex |
|---|---|---|
| Price | $520,000 | $820,000 |
| Loan at 75% LTV | $390,000 | $615,000 |
| Estimated principal and interest | $2,660 | $4,195 |
| Taxes and insurance | $375 | $670 |
| Total payment | $3,035 | $4,865 |
| Monthly rent | $2,650 | $5,800 |
| DSCR | 0.87x | 1.19x |
Nevada does not tax property on market value the way many states do. Taxable value is based on land value plus the depreciated replacement cost of the buildings, and assessed value is set at a 35% assessment ratio of taxable value. On top of that, Nevada caps how much a property's tax bill can rise each year. The lowest cap applies to owner-occupied homes and some qualifying affordable rentals; most investment properties fall under a higher cap.
Two things follow. Reno property taxes are often low relative to price, which helps the DSCR. And a long-held property can carry a bill well below what a newer purchase pays, so check how the Washoe County Assessor will treat your property after you buy rather than assuming the seller's bill carries over unchanged.
Homes on the edges of the valley, in northwest Reno, Caughlin Ranch, Somersett, Verdi and the foothills, sit in wildland-urban interface areas where wildfire risk affects both price and availability of insurance. The Reno area is also seismically active, and earthquake coverage is usually separate. Closer to the Truckee River, some properties fall in mapped flood zones.
Nevada's landlord-tenant law is found in NRS Chapter 118A and covers deposits, notices and habitability. Reno and Sparks each require business licenses for some rental activity, so check with the city where the property sits. Unpermitted back houses and garage conversions are common in older Reno neighborhoods; only legal units count toward rent in a DSCR loan.
Garage conversions and back cottages are especially common near Midtown and the university. If the unit is legal, bring the permit history so it can be counted; if not, plan the purchase around the legal units only.
The City of Reno requires a short-term rental permit with a business license, inspection, occupancy limits and parking rules. Sparks and unincorporated Washoe County, including Incline Village near Lake Tahoe, have their own permit systems. Our STR program can qualify on projected revenue on some programs where nightly rentals are permitted. Confirm the rules for your address before counting on nightly income.
Much of south Reno and Sparks was built in master-planned communities with homeowners associations. HOA dues count in the DSCR payment, and some associations restrict leasing or set minimum lease terms. Read the covenants, ask about any special assessments, and get the current dues amount before you write an offer.
Also ask whether the HOA has pending litigation or reserve shortfalls, since either can lead to higher dues later.
If a single-family rental falls under 1.0x, you can put more money down, target a duplex or fourplex instead, or look at our sub-1.0 DSCR programs, which accept a lower ratio on some files with stronger credit and reserves. Low Nevada property taxes help, but they rarely close the gap alone on a newer house.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, rent and any leases through the form below or call (877) 298-1001. We will test the ratio at a few loan amounts and show you the options. For statewide information, see our Nevada DSCR page.
Tell us whether the property is leased or vacant.
Yes. The loan qualifies on the property rent compared with the full monthly payment. We review credit, assets and reserves, not W-2s or tax returns.
They earn more rent per dollar of price, so the same loan-to-value produces a stronger ratio.
Often, relative to price. Taxable value is based on land plus depreciated building cost, and annual increases are capped. Confirm the figure for your property with the Washoe County Assessor.
Yes. We finance 1-8 unit rentals throughout Washoe County.
Yes, if it has the required city or county permit. Some programs can qualify on projected short-term revenue.
The minimum is 620. Higher scores can open more leverage.
Yes. LLC borrowers are standard, and you sign for the loan personally.
Mostly through insurance. Properties in high-risk areas can have higher premiums or fewer carriers, and that cost goes into the payment.
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