Rochester is a two-family town. Block after block of up-and-down doubles built before 1940 still rent to hospital staff, students and service workers, and prices are low enough that the rent often covers the payment with room to spare.
In short: LendingStreet finances 1-8 unit rentals across Rochester and Monroe County with DSCR loans that qualify on the property's rent instead of your W-2s or tax returns. Loans start at $150,000 with no stated maximum, purchases go up to 80% LTV, the standard minimum DSCR is 1.0x and the minimum credit score is 620. In Rochester, the city's certificate of occupancy and lead rules and the New York tax bill matter as much as the rent.
The classic Rochester rental is the two-family house: one unit on each floor, often with separate furnaces and electric meters, on a narrow lot. You find them in the 19th Ward, Beechwood, North Winton Village, Swillburg, the South Wedge and the neighborhoods off Dewey Avenue and Lake Avenue in Maplewood. Brick three- to eight-unit buildings cluster closer to Park Avenue, Monroe Avenue and the East Avenue corridor.
In the inner-ring towns, Irondequoit, Greece and Gates have postwar capes, ranches and colonials that rent as single-family homes, while Henrietta and Brighton draw renters tied to RIT and the University of Rochester and its medical center.
| Area | Typical stock | What to check |
|---|---|---|
| 19th Ward, Beechwood, Maplewood | Pre-1940 frame doubles | City CofO, lead inspection, roof and porches |
| Park Ave, Monroe Ave, South Wedge | Doubles, brick 3-8 unit buildings | Parking, tenant turnover, older wiring |
| Irondequoit, Greece, Gates | Postwar single-family homes | Town assessment, basement water |
| Henrietta, Brighton | Ranches, townhomes, student-area rentals | School tax bill, lease terms |
Inside the City of Rochester, rental properties need a certificate of occupancy that is renewed on a schedule, and the inspection includes a check for lead paint hazards. The city adopted its lead ordinance in 2005, and an older double with chipping paint on porches or window sills can fail until the work is done by lead-safe contractors.
For a DSCR loan, a property that cannot legally be rented is a problem, so ask the seller for the current certificate and any open violations before you sign. The suburban towns have their own rental and building rules, which are usually lighter, but check each town.
Property taxes are the biggest expense line on most Rochester rentals. Inside the city, school taxes are part of the city bill. In the towns, you usually get a town and county bill early in the year and a separate school tax bill in the fall, so ask for both before you run the numbers.
New York also charges a mortgage recording tax on the loan amount when the mortgage is recorded, plus a state transfer tax on the sale. The exact charges depend on the county and the property type, so get a closing cost estimate from your attorney, who handles most New York closings.
This example is illustrative and not a quote. An investor buys a two-family house for $215,000. The upstairs unit leases for $1,250 and the downstairs for $1,200, for $2,450 a month. Taxes are budgeted at $500 a month and insurance at $175.
At 80% LTV the loan is $172,000. Estimated principal and interest on a 30-year loan is about $1,173. Add taxes and insurance and the monthly payment is about $1,848, so the DSCR is about 1.33x, well above the 1.0x standard minimum. The tenants pay their own utilities, which is common in Rochester doubles with separate meters.
| Item | Amount |
|---|---|
| Purchase price | $215,000 |
| Loan at 80% LTV | $172,000 |
| Estimated principal and interest | $1,173 |
| Taxes and insurance | $675 |
| Total monthly payment | $1,848 |
| Combined rent | $2,450 |
| DSCR | About 1.33x |
Lake-effect snow, freeze-thaw cycles and century-old framing shape the insurance quote and the inspection. Insurers ask about roof age, the heating system, and whether the house still has knob-and-tube wiring or old galvanized supply pipes.
The University of Rochester and its medical center are the region's largest employer, and their staff, residents and graduate students fill rentals around the South Wedge, Swillburg, Highland Park and the 19th Ward. RIT students and staff rent in Henrietta. Wegmans, Paychex, L3Harris and the hospitals keep demand steady across the suburbs.
That mix means many Rochester doubles rent to working tenants on 12-month leases, which is exactly what a DSCR lender wants to see. Student rentals near campuses can turn over every year, so plan for vacancy and furnishing costs if you go that route.
New York caps security deposits at one month's rent and sets statewide rules for late fees and lease renewals. The 2024 Good Cause Eviction law applies in New York City and in other municipalities that opt in, so check whether the city or town where you are buying has adopted it.
For the DSCR calculation, we use the current leases or, for a vacant unit, a market rent estimate from the appraisal.
DSCR loans work for purchases and for refinancing rentals you already own. Cash-out goes up to 75% LTV, and seasoning rules vary by program. If you bought with cash or short-term money and finished the rehab, a refinance can pull your capital back out for the next double.
For five to eight units, max LTV can be lower and varies by program; see our Rochester 5-8 unit page.
Send the address, price, rents and the tax bills to LendingStreet through the form below, or call (877) 298-1001. Our investor loans are business-purpose loans on non-owner-occupied property, and LLC borrowers are standard. We will run the ratio and come back with options.
No. The loan qualifies on the property's rent compared with the payment. We review credit, reserves and the property, not your personal income.
Yes. Two-family homes are one of the most common DSCR purchases in the city. We use the combined rent of both units.
A rental without a valid city certificate may need work before it can be leased. A bridge or fix and flip loan can fund the repairs, then a DSCR loan can refinance once it is leased.
It depends on the property and the town. Get the actual city bill, or the town, county and school bills, and budget on the full amounts.
$150,000, with no stated maximum. Some low-priced Rochester homes fall under the minimum, so investors often buy doubles or multi-unit buildings.
Yes. LLC borrowers are standard, and you sign for the loan personally.
No. Our investor loans are business-purpose loans on non-owner-occupied property only.
For a vacant or soon-to-be-renovated unit, we generally use the appraiser's market rent estimate. If the unit cannot be rented in its current condition, a short-term loan for the work may come first.
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