Much of the Dallas apartment stock that smaller investors buy is older garden-style property: two- and three-story walk-ups with surface parking in Lake Highlands, Vickery Meadow, Northwest Dallas, Old East Dallas and Oak Cliff. These buildings can cash flow well, and they are underwritten on what they actually earn after Texas taxes, insurance and the cost of keeping an older building running.
In short: LendingStreet makes multifamily loans to investors buying or refinancing Dallas apartment buildings with 9 or more units, up to $5M+ on custom terms. Loans are sized on the property's NOI, DSCR and LTV, with up to 75% LTV on acquisitions, and we finance both stabilized and value-add buildings. We read the rent roll and trailing operating statements closely; for 1 to 8 units, our residential DSCR programs are the better fit.
The line matters because the underwriting is different. A fourplex in Lower Greenville or an 8-unit building in East Dallas is financed under our residential DSCR programs, which qualify on rent compared with the payment. Once a building has 9 or more units, we underwrite it as commercial multifamily, sized on net operating income with a full commercial valuation.
If your building is 5 to 8 units, see our 5-8 unit DSCR page for Dallas. If it is 9 units or more, keep reading.
Dallas apartments vary by era as much as by neighborhood. Older garden-style communities built from the 1960s through the 1980s make up a large share of the smaller-balance stock in areas like Lake Highlands, Vickery Meadow, Northwest Dallas and parts of Oak Cliff. Older East Dallas and Oak Lawn also have small prewar and mid-century brick buildings with 10 to 30 units.
Newer construction is concentrated in Uptown, the Design District, West Dallas, along DART rail corridors and in the northern suburbs. Those properties are usually larger and are financed differently. The table below sums up what each vintage tends to raise in underwriting.
| Vintage | Typical Dallas locations | Underwriting focus |
|---|---|---|
| Prewar and mid-century brick, 10 to 30 units | Old East Dallas, Oak Lawn, parts of Oak Cliff | Plumbing, electrical, parking, zoning of nonconforming units |
| 1960s to 1980s garden-style | Lake Highlands, Vickery Meadow, Northwest Dallas | Roofs, foundations, deferred maintenance, utility billing |
| 1990s and 2000s | North Dallas, Far North Dallas, suburbs | Capital plan, competition from newer supply |
| Newer construction | Uptown, Design District, West Dallas | Usually larger balances; lease-up and concessions |
We start from the rent roll and trailing 12-month operating statement, apply a vacancy and credit-loss assumption, add other income such as laundry, parking or utility reimbursements, and subtract realistic operating expenses. On older Dallas buildings, operating expenses per unit are often higher than investors expect once taxes, insurance, repairs, turns and payroll are counted.
The loan is the lower of what the DSCR supports at the estimated annual debt service and what the LTV limit allows. We look at the trend in the operating statements too: rising collections and falling concessions help, while recent spikes in vacancy or bad debt will be questioned.
This example is illustrative and not a quote. An investor buys a 36-unit garden-style building for $3,600,000. Average in-place rent is $1,195 a month, so gross potential rent is $516,240. The underwriting applies 7% vacancy and credit loss and adds $21,000 in laundry and utility reimbursement income, for effective gross income of $501,103.
Operating expenses are budgeted at $6,100 per unit, or $219,600, covering taxes budgeted on the purchase price, insurance, repairs, turns, payroll, management, utilities and reserves. NOI is $281,503.
At 75% LTV the loan is $2,700,000, estimated annual debt service is about $228,996 and DSCR is about 1.23x. At 70% LTV the loan is $2,520,000, estimated annual debt service is about $213,730 and DSCR is about 1.32x. The investor brings $180,000 more to closing for the extra cushion.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Net operating income | $281,503 | $281,503 |
| Loan amount | $2,700,000 | $2,520,000 |
| Estimated annual debt service | $228,996 | $213,730 |
| DSCR | 1.23x | 1.32x |
| Down payment | $900,000 | $1,080,000 |
A stabilized building has steady occupancy, collections that match the rent roll and no major work pending. It can go straight to a permanent multifamily loan sized on in-place NOI.
A value-add building is one where the plan is to renovate units, fix deferred maintenance, improve management or bring rents up to market. If the in-place NOI already supports a permanent loan, we can finance it that way and you renovate from cash flow and reserves. If it does not, a commercial bridge loan funds the purchase and the plan, and you refinance into permanent financing once the new rents show up in the operating statements.
Dallas apartment buildings carry large property tax bills, set through the Dallas Central Appraisal District for property in Dallas County. Expect the appraised value to move toward your purchase price after a sale, and remember that Texas is a non-disclosure state, so the appraisal district does not automatically see your price. Owners can protest each year, but underwriting does not assume a protest succeeds.
Insurance on older garden-style property with many roofs can be expensive in hail country, and deductibles are often a percentage of value. Master-metered buildings, where the owner pays water or electricity for all units, need a close look at utility costs and any reimbursement billing.
Apartment loans take longer than residential loans. Expect a full commercial valuation, a property-condition review, an environmental review, and a close read of the rent roll against bank deposits. A unit walk is common on older buildings. Starting with complete documents is the best way to keep the timeline reasonable.
These items let the team size the loan on the first pass.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, unit count, price, rent roll and T-12, and we will rebuild the NOI with realistic Dallas taxes and insurance, test leverage at a few levels and tell you whether a permanent or bridge structure fits. Get a quote below or call (877) 298-1001.
Nine units. Buildings with 5 to 8 units are financed under our residential DSCR programs, and 2 to 4 units have their own rental loan program.
On the building's net operating income. We divide NOI by the estimated annual debt service to get DSCR, and the loan is the lower of what the DSCR and the LTV limit support.
Yes, as long as the property is cash-flow positive and the condition review does not turn up issues that make it unfinanceable. Older buildings often need a closer look at roofs, foundations, plumbing and utility costs.
Yes. If in-place NOI supports a permanent loan, you can renovate from cash flow. If it does not, a commercial bridge loan can fund the purchase and plan, with an exit to permanent financing.
A current rent roll, trailing 12-month operating statement, prior year-end statements, the tax bill, an insurance quote, entity documents and a summary of your experience and liquidity.
Longer than a residential loan, because a full valuation, environmental and property-condition reviews and a detailed rent roll review are standard. A complete file at the start helps the most.
Yes. We review 9+ unit buildings across Dallas, Collin and Denton counties and the rest of the metro, including Garland, Mesquite, Irving and Richardson.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
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Properties with 5+ units are commercial by definition, so they fall outside Fannie/Freddie residential programs. But at 5-20 units the loan is usually too small for institutional multifamily desks, whose minimums and timelines are built for 50+ unit assets. The result is a financing gap: too big for residential, too small for institutional.
Through DSCR-based and bridge capital sources that underwrite to the property's net operating income rather than agency checklists. Typical structures: purchase or refinance at up to 75% LTV, 5-20 units, $200K-$20M, with bridge-to-perm available for value-add and lease-up plays.
Stabilized small multifamily DSCR loans typically close in 14-21 days. Bridge structures for value-add acquisitions can close in 5-10 days, then refinance into permanent DSCR financing after stabilization.
No. These programs underwrite the property's income (NOI / DSCR), not your tax returns. LLC borrowers are standard, and there is no W2 requirement.
Mixed-use with a residential majority (for example, apartments over retail) can be placed through commercial and mixed-use capital sources through the same LendingStreet application, with custom terms up to $5M+.