Best rates for South Dakota multifamily (under 4 units)
I've been working with a few lenders shopping rates for DSCR (1.5+) for LTR in South Dakota, including a couple of local banks and two national lenders (ex. DreamPoint Capital). These are for multifamily <= 4 units. Best rates so far around 6.5 - 6.675%. My credit rating is exceptional, solid property 100% occupied and I have cash reserves. Feedback from lenders is that there aren't any really good programs for South Dakota. Could I do better or should I be happy with these rates?
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Mark, those numbers line up with what I'm seeing right now for South Dakota. Even with strong credit, full occupancy, and solid reserves, lenders are pricing SD a bit higher because it's a smaller, lower‑volume market and most national DSCR programs don't have aggressive incentives there. The 6.5–6.675% range you're getting quoted is consistent with what investors are reporting across similar DSCR updates.
One thing that can help is comparing programs that weigh DSCR more heavily than geography — some lenders will price more favorably when you're above a 1.5 DSCR, even in smaller states. If you want, I can take a look at the deal metrics and see if there are any lenders in my network offering better pricing for 1–4 unit multifamily in SD right now.
Happy to help you shop it around if you’re still exploring options.