Much of San Antonio's apartment stock is garden-style complexes built in the 1970s and 1980s along Loop 410, the Medical Center and the northeast side. Those buildings can cash flow well, but their age shows up in the insurance quote and the repair budget.
In short: LendingStreet finances non-owner-occupied apartment buildings with 9 or more units across San Antonio, both stabilized and value-add. Loans are sized on the property's NOI, DSCR and value, with custom terms up to $5M+ and up to 75% LTV on acquisitions. We underwrite from the rent roll and trailing operating statements, and LLC borrowers are standard.
Our multifamily program starts at 9 units. Buildings with 1 to 8 units are residential rentals and run through our DSCR programs, including the San Antonio 5 to 8 unit page. Once you cross into 9+ units, the loan is sized on the building's actual income and expenses rather than on market rent for each unit.
That shift helps owners who run a tight operation, and it exposes buildings with high expenses or weak collections.
It also changes the paperwork. Instead of a lease for each unit and a market rent schedule, we work from the full rent roll, the operating statements and a commercial appraisal that looks at the building's income as a whole.
The Medical Center area and the I-10 corridor toward UTSA have a deep supply of 1970s and 1980s complexes, plus newer buildings closer to Loop 1604, with tenants tied to hospitals, clinics and the university. Northeast San Antonio near Loop 410 and I-35 has older garden complexes that draw value-add buyers, with demand linked in part to Joint Base San Antonio.
Near downtown, smaller infill apartment buildings and conversions show up around Southtown, Tobin Hill and the Pearl. On the far west side near Alamo Ranch, newer product sits next to fast-growing single-family neighborhoods.
| Building type | Where you see it | What we look at closely |
|---|---|---|
| 1970s-1980s garden complex | Medical Center, Loop 410, northeast side | Roofs, plumbing, deferred maintenance, insurance |
| Small infill building | Southtown, Tobin Hill, near the Pearl | Rent history, parking, zoning |
| Newer suburban complex | Loop 1604, Alamo Ranch, Stone Oak | Tax value after sale, concessions, lease-up |
A stabilized building has steady occupancy and income that covers debt service today. It usually fits a permanent loan sized on trailing NOI. A value-add building has below-market rents, vacant down units or deferred maintenance you plan to fix.
Value-add deals often start with a bridge loan, then refinance into a permanent loan once the new rents show up in the operating statements. We size the permanent loan on income you can document, not on a pro forma.
We read the rent roll against the trailing 12 months of operating statements. If the rent roll shows full occupancy but collections in the T-12 are lower, we use the collections. Concessions, bad debt and units used as models or offices get backed out.
On expenses, we compare your figures to the actual tax bill and a current insurance quote. Many San Antonio buyers are surprised when the post-sale tax value and a new insurance premium add up to more than the seller's statements showed.
This example is illustrative and not a quote.
Assume a 32-unit 1980s complex near the Medical Center priced at $3,200,000. Rents average $1,050, for gross potential rent of $403,200. With an assumed 7% vacancy and loss plus $14,400 in laundry and fee income, effective income is $389,376.
Assumed operating costs of $137,400 leave NOI of $251,976. A loan of $2,400,000 is 75% LTV. Estimated annual debt service is about $196,467, for a DSCR of 1.28x.
| Line | Assumed figure |
|---|---|
| Gross potential rent | $403,200 |
| Effective income | $389,376 |
| Operating costs | $137,400 |
| NOI | $251,976 |
| Loan at 75% LTV | $2,400,000 |
| Estimated annual debt service | $196,467 |
| DSCR | 1.28x |
Texas has no state income tax, so property tax is one of the largest expense lines on a San Antonio apartment building. The Bexar Appraisal District sets the value and local taxing units set the rates. Owners can protest each year, and you should confirm the current figure before you sign a contract.
Insurance on older complexes reflects hail and wind risk, roof age and the condition of plumbing and electrical systems. Some properties near creeks sit in flood zones and need flood coverage. Reserves for roofs, HVAC and unit turns belong in your budget.
Apartment loans take longer than residential loans. Expect an appraisal, a rent roll review, and often environmental and property condition reports. Have these ready:
San Antonio apartment demand leans on a few large employers and institutions. The South Texas Medical Center brings hospital and clinic staff to the northwest side. Joint Base San Antonio, which includes Fort Sam Houston, Lackland and Randolph, supports renters on several sides of the city. UTSA and other campuses add student and young professional renters along I-10 and Loop 1604.
We do not underwrite to a headline employer. We underwrite to the building's own rent roll and collections. Still, knowing who rents your units helps explain turnover, lease timing and the rent level you can hold after a renovation.
We look at your experience owning or managing apartments, your liquidity after closing and the quality of the property manager. A first-time apartment buyer can still be a fit with an experienced manager and reserves. Recourse varies by program.
Use the form below or call (877) 298-1001 with the unit count, price, rent roll and T-12.
Nine units. Buildings with 1 to 8 units use our residential DSCR programs, such as the San Antonio 5 to 8 unit page.
Yes. Value-add deals often start with a commercial bridge loan for the renovation and lease-up, then move to a permanent loan once the higher income is documented.
Permanent loans are sized on income shown in the rent roll and trailing statements. Pro forma rents help explain a bridge plan, but they do not size a permanent loan.
Up to 75% LTV on acquisitions, with custom terms up to $5M+. The amount is limited by whichever of NOI, DSCR and LTV is tightest.
We use the actual tax bill, a current insurance quote and realistic repairs and management. Seller statements often leave out management or reflect an older tax value.
Yes, if the property cash flows and the condition supports the loan. Expect closer review of roofs, plumbing, electrical and insurance.
Yes. LLC and other entity borrowers are standard on multifamily loans.
Yes. On a 9+ unit building, the manager affects collections, turnover and expenses. A manager with experience running similar San Antonio complexes can strengthen a file, especially for a newer owner.
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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+.