Missouri reassesses property every odd-numbered year, and in St. Louis and Kansas City those reassessments have pushed many rental tax bills sharply higher. Budget for the next one before you size a large loan.
In short: LendingStreet's jumbo DSCR loans cover about $1.5M to $5M+ on Missouri investment properties of 1 to 8 units, and they qualify on rental income rather than W-2s or tax returns. In Missouri, jumbo balances usually come from Ladue, Clayton and Central West End homes in St. Louis, Kansas City's Sunset Hill and Brookside, 5-8 unit buildings in both metros, and lake homes at Lake of the Ozarks. Residential property is assessed at 19% of value, there is no transfer tax, and Missouri is a non-disclosure state.
In St. Louis, the Central West End, Clayton, Ladue, Kirkwood and Webster Groves have large homes and small multi-unit buildings leasing to hospital, university and corporate employees. Chesterfield and Town and Country add newer executive homes.
In Kansas City, Missouri, Sunset Hill, Brookside, Waldo and the Country Club Plaza area have older homes and multi-unit buildings, and Lee's Summit and Liberty have newer suburban rentals. Lake of the Ozarks and Table Rock Lake near Branson have lake homes rented by the week, and Columbia has buildings near the University of Missouri.
| Area | What a jumbo balance usually buys | Main underwriting issue |
|---|---|---|
| St. Louis central corridor | Large home or 5-8 unit building | Occupancy permits, reassessment |
| Kansas City Plaza and Brookside | Multi-unit building or several rentals | City STR limits, combined rent |
| Lake of the Ozarks | Lake home rented weekly | Dock condition, seasonal revenue |
| Columbia and Springfield | Portfolio near campus | Student turnover |
Single long-term rentals above $1.5M are limited to a few St. Louis County suburbs and Kansas City neighborhoods. More often, a Missouri jumbo file is a 5-8 unit building, a group of rentals, or a high-end lake home.
Missouri is a non-disclosure state, so sale prices are not public record. Appraisers rely on the MLS and their own data, and top-end properties get closer review.
Missouri assesses residential property at a 19% assessment ratio of market value, and counties reassess in odd-numbered years. St. Louis County, St. Louis City and Jackson County reassessments have produced large increases in recent cycles. Budget for the next reassessment, not just the current bill.
Missouri has no real estate transfer tax, so closing costs on a large purchase are mostly title, recording, appraisal and lender fees.
Missouri sees frequent tornadoes and hail, and insurers have raised wind and hail deductibles. Properties near the Missouri, Mississippi and Meramec rivers may sit in mapped flood zones. Older brick homes and multi-unit buildings in St. Louis may have aging roofs, tuckpointing needs or original systems.
This example is illustrative and not a quote. An investor buys a Clayton home for $1,550,000 that leases for $9,200 a month. Taxes are budgeted at $1,750 a month, allowing for the next reassessment. Insurance is $450.
At 70% LTV the loan is $1,085,000 and estimated principal and interest is about $7,402, for a total monthly payment of about $9,602 and a DSCR of about 0.96x. At 60% LTV the loan is $930,000, estimated principal and interest is about $6,344, the payment is about $8,544 and DSCR is about 1.08x.
Budgeting for reassessment up front avoids a ratio that looks fine at closing and falls short a year later. If you plan to appeal an assessment, do not count on the result when you size the loan.
| Item | 70% LTV | 60% LTV |
|---|---|---|
| Purchase price | $1,550,000 | $1,550,000 |
| Loan amount | $1,085,000 | $930,000 |
| Estimated principal and interest | $7,402 | $6,344 |
| Property taxes | $1,750 | $1,750 |
| Insurance | $450 | $450 |
| Total monthly payment | $9,602 | $8,544 |
| Monthly rent | $9,200 | $9,200 |
| DSCR | About 0.96x | About 1.08x |
Many St. Louis County municipalities require an occupancy inspection or permit when a new tenant moves in, so plan for inspections on each turnover. Kansas City generally does not allow non-owner-occupied short-term rentals in residential zones, and St. Louis requires short-term rental permits. Branson allows nightly rentals only in certain zones.
Some programs qualify a short-term rental on projected revenue, which fits Lake of the Ozarks and permitted Branson-area homes best.
The test is simple: does the property's rent cover its payment? Lenders add principal, interest, taxes, insurance and HOA dues, divide the rent by that total and generally want 1.0x or more. Some programs accept a ratio under 1.0x with other strengths in the file.
As the loan gets bigger, the file gets more scrutiny. Reserves are typically higher, appraisals are reviewed more closely and the highest LTVs are often reserved for smaller balances. Specific limits vary by program.
If one high-value property does not cover its payment at the leverage you want, there are other routes. Five or more rentals can go under one blanket portfolio loan, qualified on combined cash flow with one closing, one payment and release provisions when a property sells. A 5-8 unit building qualifies on the combined rent of every unit, with leverage that varies by program.
You can also bring more cash, take a smaller loan, or look at a sub-1.0 DSCR program. Buildings of 9 or more units are commercial; see our multifamily loans page for those.
Start with these items:
Our investor loans are business-purpose loans on non-owner-occupied property. Share the property details and your target leverage, and we will size the loan on realistic costs, show the ratio at a few loan amounts and lay out the options. Use the form below or call (877) 298-1001. For broader context, see our Missouri DSCR loans page.
Every odd-numbered year. Recent reassessments in the St. Louis and Kansas City areas have raised many bills, so budget for the next one.
No. Missouri has no real estate transfer tax.
Non-owner-occupied short-term rentals are generally not allowed in residential zones. Check with the city before you buy.
No. The loan is sized on rent compared with the payment. Credit, reserves and the property itself are what get reviewed.
Yes. LLC borrowers are standard. You will usually sign for the loan personally as well, and we will ask for the LLC's formation documents.
Yes, with a cash-out refinance up to 75% LTV, frequently less on big loans. How long you must own the property first varies by program.
No. Our investor loans are business-purpose loans on non-owner-occupied property only.
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.