St. Louis is a city of brick: two-family flats, four-family buildings and solid single-family homes built a century ago. Prices are low relative to rent, which makes the metro one of the easier places to clear a DSCR ratio at full leverage.
In short: LendingStreet offers DSCR purchase and refinance loans for St. Louis-area rentals from 1 to 8 units, qualified on rent instead of personal income. Expect up to 80% LTV on a purchase, up to 75% LTV on a cash-out, a 1.0x standard minimum DSCR and a 620 minimum credit score, with loans from $150,000 and no stated maximum. The split between the independent city and St. Louis County's many municipalities, occupancy permits and the age of brick buildings are the St. Louis items to check first.
In the city, Tower Grove South, Bevo Mill, Dutchtown, Carondelet, Benton Park, Soulard, Shaw and The Hill hold many two-family and four-family brick buildings. The Central West End and Lafayette Square are pricier. North city neighborhoods have the lowest prices and the widest range of condition.
St. Louis County is separate from the city and includes dozens of municipalities, such as Maplewood, Affton, Lemay, Kirkwood, Webster Groves and Florissant. St. Charles County to the west has newer subdivisions, and the Metro East across the river is in Illinois, with different laws and taxes.
| Area | Typical rental stock | What to check |
|---|---|---|
| Tower Grove South and Bevo Mill | Brick two-family flats, four-families | Tuckpointing and roof condition, separate utilities |
| Dutchtown and Carondelet | Flats and single-family homes at low prices | Condition, rent history |
| Maplewood, Affton, Lemay | Brick bungalows, small multi-unit | Municipal occupancy permits |
| St. Charles County | Newer subdivisions | HOA rules, higher prices |
A St. Louis two-family flat usually has one unit per floor with separate entrances. Four-family buildings are common too, and both qualify on the combined rent of all units. Many were built from the 1890s to the 1930s with solid brick walls, so the main items are roofs, mortar joints, foundations, boilers and older wiring.
Prices in much of the city are low relative to rent, so a well-maintained flat often clears 1.0x at 80% LTV. The $150,000 minimum loan matters in the lowest-priced areas, where investors often finance larger buildings or combine several properties under one blanket loan.
Missouri assesses residential property at a 19% assessment ratio, and reassessment happens in odd-numbered years. The City of St. Louis and St. Louis County each have their own assessor and combined rates, and rates vary by school district and municipality. Check the current assessed value and budget on the full bill.
Missouri does not charge a real estate transfer tax, which keeps closing costs lighter. Title and recording costs are separate, and some municipalities charge fees for occupancy inspections.
St. Louis sees severe spring storms, hail and occasional tornadoes, and the region sits near the New Madrid seismic zone, where earthquake coverage is separate. Insurers look at roof age, boilers, wiring and plumbing on older brick buildings.
Many St. Louis County municipalities require an occupancy permit or inspection when a property sells or a new tenant moves in, and requirements vary from town to town. The City of St. Louis has its own inspection and permit rules for rentals. Ask the municipality before closing, because a repair list can affect your budget.
Short-term rentals in the city and county face permit and tax rules that vary by jurisdiction. Most St. Louis DSCR loans use 12-month leases, and Missouri landlord-tenant law sets statewide basics.
If you own several flats across the city and county, a blanket portfolio loan can refinance five or more of them in one closing, qualified on combined cash flow, with release provisions when you sell one. That structure is common for St. Louis investors who have built portfolios one building at a time.
This example is illustrative and not a quote. An investor buys a brick two-family flat in Tower Grove South with both units leased.
The purchase price is $265,000 and the rent is $2,400 a month. At 80% LTV the loan is $212,000, so the down payment is $53,000 before closing costs. Estimated principal and interest on a 30-year loan comes to about $1,446, and taxes and insurance add $390, for a total payment of about $1,836. Rent divided by that payment gives a DSCR of about 1.31x, above the 1.0x standard minimum.
| Item | 80% LTV purchase |
|---|---|
| Purchase price | $265,000 |
| Loan amount | $212,000 |
| Estimated principal and interest | $1,446 |
| Property taxes | $240 |
| Insurance | $150 |
| Total monthly payment | $1,836 |
| Monthly rent | $2,400 |
| DSCR | 1.31x |
Underwriting starts with the property, not your pay stubs. We divide the rent by the total monthly payment (principal, interest, taxes, insurance and HOA) and look for at least 1.0x on standard programs. Sub-1.0 programs are available when a strong property misses by a little.
Two to four unit buildings use the rent from all units together, and 5 to 8 unit buildings are financed as residential DSCR loans with leverage that varies by program. Anything with 9 or more units moves to commercial multifamily. For markets outside the metro, see our Missouri DSCR page.
A complete file gets a faster answer. Our investor loans are business-purpose loans on non-owner-occupied property; tell us the address, the rent and your target loan amount and we will show where the ratio lands. Request a quote with the form below or call (877) 298-1001.
Yes. Flats qualify on the combined rent of both units, and four-family buildings and 5-8 unit buildings work the same way.
Often, yes. Many municipalities require an inspection or permit at sale or tenant turnover. Requirements vary, so check with the town.
Missouri uses a 19% assessment ratio for residential property, with combined rates that vary by jurisdiction and school district. Reassessment happens in odd-numbered years.
Yes, but Illinois has its own laws, taxes and closing costs, so underwrite it as an Illinois property.
Standard programs look for 1.0x or higher, meaning rent at least covers the full payment. Sub-1.0 programs exist for properties that fall slightly short.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so a home you live in does not qualify.
Yes. LLC borrowers are standard on DSCR loans. You sign for the loan personally and provide the operating agreement and formation documents.
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