Greater Boston's classic investment property is the three-family triple-decker, and in Somerville, Cambridge, Dorchester or Jamaica Plain many of them now trade above $1 million. A large-balance DSCR loan qualifies that building on its three rents instead of your income.
In short: LendingStreet finances $1M+ Boston-area rentals, including triple-deckers, two-families and brownstone condos, with DSCR loans that qualify on the property's rent. Loans start at $150,000 with no stated maximum, rates start at 6.125% for well-qualified borrowers, and there are no W-2s or tax returns. Purchases go up to 80% LTV and cash-out up to 75%, though large balances often get less leverage and need more reserves. Three rents against one mortgage is why triple-deckers often clear the 1.0x ratio more easily than a Back Bay condo at the same price.
The triple-decker, a three-story wood-frame building with one apartment per floor, was built by the thousands across Boston, Somerville, Cambridge, Dorchester, Worcester and other Massachusetts cities. For a DSCR loan, three separate leases spread a seven-figure payment in a way a single-family or condo cannot.
Two-family homes, sometimes called two-deckers or side-by-sides, are the other common large-balance rental in neighborhoods like Jamaica Plain, Roslindale, Brighton and Medford. Both are 1-4 unit residential properties, the core DSCR property type.
The trade-off is age. Most of these buildings are a century old, which brings up lead paint, older systems and insurance questions that a newer building would not.
Large-balance rental demand is spread across the city and the inner suburbs. These are general patterns only; rents and values vary block by block, so use current comps.
Many Boston condos are a single brownstone or triple-decker split into two to six units. These small associations are often self-managed, with a thin budget, little in reserves and a master insurance policy the owners arrange themselves.
That matters for a DSCR loan. Lenders review the association's budget, reserves, insurance and any pending repairs, and small associations often fall outside standard condo guidelines. Some still qualify on a non-warrantable condo program, often at lower leverage.
Condo fees count in the payment. In a Back Bay or South End building with an elevator or professional management, the fee can be a large share of the monthly cost, which is why single condo units often need more equity than a triple-decker at the same price.
Massachusetts has its own landlord rules, and a few of them touch the loan file. Treat this as general background and confirm details with a Massachusetts real estate attorney.
The same budget can buy very different rentals in Greater Boston. How each one behaves in DSCR underwriting is fairly predictable, even though the exact terms vary by program.
Use this as a way to frame the decision, then run your actual numbers.
| Item | Triple-decker | Two-family | Brownstone condo unit |
|---|---|---|---|
| Rent streams | Three | Two | One |
| Monthly HOA or condo fee | Usually none | Usually none | Yes, counted in the payment |
| Project review | No | No | Yes; small associations often non-warrantable |
| Typical age issues | Lead, systems, porches | Lead, systems | Shared building repairs, special assessments |
| Ratio at the same price | Often strongest | Middle | Often weakest |
| Leverage on a large balance | Varies by program | Varies by program | Often lower if non-warrantable |
Boston, Cambridge, Somerville, Brookline and some other Massachusetts cities offer a residential exemption that lowers the tax bill for owners who live in the property. Investors do not qualify for it on a non-owner-occupied rental.
If the seller lived in one unit of the triple-decker, the current tax bill likely includes that exemption. Your bill after closing may be higher. Underwrite the loan with the tax amount you will actually pay, not the seller's figure.
This example is illustrative and not a quote. An investor buys a triple-decker in Somerville for $1,500,000, with all three units leased on September 1 terms. Rents are $3,300, $3,450 and $3,500, for $10,250 a month in total. Taxes, without the residential exemption, are budgeted at $1,050 a month and insurance at $300.
At 75% LTV the loan is $1,125,000 and the down payment is $375,000. At a sample rate of 7.375% on a 30-year fixed, principal and interest is about $7,770. The total payment is about $9,120, and DSCR is $10,250 divided by $9,120, or about 1.12x.
That ratio leaves room above the 1.0x standard minimum, which helps if one unit turns over or the insurance renewal comes in higher.
| Line item | Monthly amount |
|---|---|
| Unit 1 rent | $3,300 |
| Unit 2 rent | $3,450 |
| Unit 3 rent | $3,500 |
| Total rent | $10,250 |
| Principal and interest ($1,125,000 at 7.375%, 30 years) | $7,770 |
| Taxes and insurance | $1,350 |
| Total payment | $9,120 |
| DSCR | About 1.12x |
A century-old wood-frame building raises questions a newer one would not. Insurers ask about the roof, electrical service, heating system and plumbing, and some will not write a policy on knob-and-tube wiring or an old oil tank without updates. Get the quote during your inspection period so there are no surprises close to closing.
Appraisers look at condition as well as rent. Rear porches, which are common on triple-deckers, often need attention, and deferred maintenance can show up as a lower value or a repair requirement. If the building needs real work before it can be rented at market, a short-term bridge loan first and a DSCR refinance after is a common path.
Snow, ice and winter heating costs are part of owning in New England. If you pay heat for tenants, that expense does not enter the DSCR formula directly, but it affects your actual cash flow, so plan for it.
A large share of Boston-area leases turn over on September 1, driven by the student calendar. If you buy in spring or early summer, units may be under signed leases that start in the fall, or may be vacant until then.
Lenders will want to see either current leases or a market rent estimate the appraiser supports. Signed future leases can help, but how they are treated varies by program, so ask early. Student rentals near campuses can rent well, but some programs look more carefully at rooming-house setups or leases with many unrelated tenants.
If you are buying mid-lease, ask the seller for the security deposit and last month's rent records, which Massachusetts landlords must handle under specific rules.
Plenty of Boston-area investor loans land between $500K and $1M. Typical examples are two-family homes and smaller triple-deckers in Dorchester, Roslindale, Hyde Park and East Boston, multi-families in Quincy, Malden, Medford and Revere, and single condo units in South Boston, Jamaica Plain and Brighton.
At this size, leverage and reserves are often closer to standard program terms: up to 80% LTV on a purchase and up to 75% on a cash-out refinance, with reserve needs that are often lighter than on a $1M+ file. Both vary by program, and the 1.0x standard minimum DSCR and 620 credit floor stay the same.
The local items do not shrink with the loan. Lead paint status on pre-1978 units, the condo association's budget and insurance, and whether the current tax bill reflects an owner's residential exemption all still matter.
LendingStreet is an investment property financing company. We offer business-purpose DSCR loans on non-owner-occupied property, with a 620 minimum credit score, LLC borrowers allowed and 30-year fixed options. On large balances, some programs require a second appraisal or a more detailed review.
Send the address, price, rents and target leverage. The financing team reviews the scenario and comes back with 2-3 options, including a sub-1.0 or cash-out structure where it fits.
Large Boston files move faster when the building's paperwork is in order. Start with the items below.
Yes. A triple-decker is a three-unit residential property, which is a core DSCR property type. The loan qualifies on the combined rent of all three units. Expect the appraiser and insurer to look closely at condition, since most triple-deckers are a century old.
Sometimes. Small associations often fall outside standard condo guidelines because of thin budgets or reserves. Some qualify on a non-warrantable condo program, often at lower leverage. Send the association's budget and master policy early so the review does not hold up closing.
Statewide rent control was ended by a 1994 ballot vote, but efforts to bring back rent limits have been active. Confirm current law with a Massachusetts attorney before you buy.
Boston generally limits short-term rentals to owner-occupied units, so investor properties are usually financed on long-term rent. Rules differ in other towns, so check locally.
It mainly affects your obligations as a landlord. If a child under six lives in a pre-1978 unit, deleading or interim controls are generally required. Ask the seller for any compliance letters.
If the seller lived in the property, their bill may include a residential exemption that investors cannot claim. Underwrite with the bill you will pay.
Fourplexes qualify as 1-4 unit residential properties. Buildings with five or more units move to our multifamily programs, which are underwritten on net operating income rather than a simple rent-to-payment ratio.
Our DSCR programs have no stated maximum. Loans start at $150,000, and larger balances are reviewed and priced case by case. On larger loans, maximum LTV is often lower and reserve requirements higher.
Not with our programs. LendingStreet finances non-owner-occupied investment property only.
Yes. DSCR loans start at $150,000 with no stated maximum. Loans of $500K to $1M are common for two-families and triple-deckers in Dorchester, Quincy and Malden and for single condo units in South Boston and Jamaica Plain.
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