Fort Worth's apartment stock runs from two-story garden complexes on the east and south sides to newer mid-rise buildings near West 7th and the Near Southside. A 9+ unit building of any vintage is financed the same basic way: on what the rent roll actually produces after expenses.
In short: LendingStreet provides commercial multifamily loans for Fort Worth apartment buildings with 9 or more units, for both stabilized and value-add investors. Loans are sized on the property's NOI, DSCR and LTV, with custom terms up to $5M+ and up to 75% LTV on acquisitions. Buildings with 1 to 8 units use our residential programs instead.
The unit count decides the program. A Fort Worth building with 9 or more apartments is underwritten as commercial multifamily, using the rent roll, trailing operating statements and a full appraisal. A fourplex or a 6-unit building is a residential loan that qualifies on rent through our DSCR programs, and those have their own Fort Worth pages.
Our investor loans are business-purpose loans on non-owner-occupied property, so every unit is leased to tenants.
Investors find older garden-style complexes, often two stories with surface parking, across east Fort Worth, the south side and the inner-ring suburbs of Tarrant County. These buildings tend to carry lower rents and more deferred maintenance, which makes them common value-add targets.
Near TCU and Berry Street, small apartment buildings lease to students and young professionals. The Near Southside and Medical District draw hospital workers, and the West 7th and downtown areas have newer mid-rise product with higher rents and higher taxes. Older buildings in the historic neighborhoods south and west of downtown add character, and repair bills, of their own.
| Building profile | Typical Fort Worth setting | Underwriting focus |
|---|---|---|
| Older garden complex | East and south Fort Worth, inner-ring suburbs | Roofs, plumbing, HVAC, deferred maintenance, collections |
| Student-oriented building | Near TCU and Berry Street | Lease cycles, turnover costs, roommate leases |
| Medical-adjacent building | Near Southside and Medical District | Rent levels versus nearby newer product |
| Newer mid-rise | West 7th, downtown edges | Tax assessment, concessions, insurance |
Underwriting starts from the current rent roll and the trailing 12 months of operating statements. It applies a vacancy and credit loss assumption, then subtracts property taxes, insurance, repairs, payroll or management, utilities the owner pays and replacement reserves. The result is NOI.
The loan is the smaller of what the LTV cap allows and what NOI supports at the target DSCR. Underwriters also look at the expense ratio and per-unit figures. If a seller's statements show unusually low expenses, the underwriter will usually substitute more realistic numbers, which lowers NOI and the loan.
This example is illustrative and not a quote. Rents, vacancy and expenses are assumptions for the math, not Fort Worth market data.
An investor buys a 24-unit complex for $2,880,000, or $120,000 per unit. Units rent for an assumed $1,250 a month, for $360,000 of scheduled rent. With an assumed 8% vacancy and credit loss, effective income is $331,200. Taxes are $52,000, insurance $31,000, repairs, payroll, management and owner-paid utilities $62,000, and reserves $6,000, for total expenses of $151,000 and an expense ratio of about 45.6%.
NOI is $180,200, or $7,508 per unit. The 75% LTV cap would allow $2,160,000, but the 1.25x DSCR test sets the loan at $1,660,000, or $69,167 per unit. Estimated annual debt service is $143,983, DSCR is 1.25x and LTV is 57.6%.
| Item | Total | Per unit |
|---|---|---|
| Purchase price | $2,880,000 | $120,000 |
| Scheduled rent | $360,000 | $15,000 |
| Effective income | $331,200 | $13,800 |
| Operating expenses | $151,000 | $6,292 |
| NOI | $180,200 | $7,508 |
| Loan amount | $1,660,000 | $69,167 |
| Estimated annual debt service | $143,983 | $5,999 |
| DSCR | 1.25x | 1.25x |
| LTV | 57.6% | 57.6% |
A stabilized building is occupied, collecting rent and producing enough NOI to cover debt service today. It fits a permanent loan for purchase or refinance.
A value-add building has upside that has not shown up in the rent roll yet: units offline for renovation, below-market rents, poor management or high vacancy. If current NOI already covers a permanent loan, you can buy it that way and renovate over time. If it does not, a commercial bridge loan can fund the acquisition and renovation period, with a plan to refinance into a permanent loan once the building is leased at the new rents.
Lay out the plan in writing: which units get renovated, what each one costs, how long each unit sits empty and what rent the renovated units have already achieved. Signed leases on finished units are the strongest evidence that new rents are real. Underwriting will also look at your experience running similar buildings and at the liquidity you hold to carry the property through slower months.
Property taxes are usually the largest expense on a Fort Worth apartment building after payroll and repairs. Tarrant County, the city, the school district, the college district and the hospital district each levy a rate on the appraisal district's value. A sale often triggers a higher assessment, so underwriting budgets on the purchase price or appraised value. Owners can protest the value each year.
Insurance on older garden complexes has become expensive in North Texas because of hail and wind claims, and roofs, wiring and plumbing affect both premium and availability. Get a quote during your feasibility period.
Texas does not make sale prices public record. Appraisers of Fort Worth apartment buildings rely on sales they can verify and on the income approach, which capitalizes NOI. Clean, believable operating statements matter more here than in states with public sale data.
Multifamily loans take longer than residential loans. Plan for an appraisal, a property condition report and an environmental report, plus a unit-by-unit review of the rent roll against deposits.
Send the unit count, address, rent roll and trailing statements through the form below, or call (877) 298-1001. We will rebuild NOI with realistic taxes and insurance, size the loan on DSCR and LTV, and return custom terms for that building.
Nine units. Buildings with 1 to 8 units are residential and use our DSCR rental programs instead.
Yes. If current NOI covers a permanent loan, finance it that way. If not, a commercial bridge loan can cover acquisition and renovation first.
Seller statements often understate expenses or skip reserves, and taxes usually rise after a sale. Underwriting uses realistic figures, which can lower NOI.
Up to 75% LTV on acquisitions, but the DSCR test often sets a lower amount on Fort Worth apartments because of taxes and insurance.
We review them like other 9+ unit buildings, with a close look at lease cycles, turnover costs and collections.
The rent roll and trailing 12-month operating statement, backed by deposit records. They drive NOI and the loan amount.
Longer than a residential loan, because appraisal, property condition and environmental reports are common. Send documents early to keep it moving.
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+.