Looking to fund 7 units

[Matthew Hutchinson]

Hi,

I am looking to fund 7 units. I have plenty of experience with 1-4 units but have never done more than 4. I am looking into what type of financing I would be able to get and what type of documentation I would need. I do know about DSCR but have never done any of DSCR financing or put together any type of package for that type of financing. Any help would be greatly appreciated.

Thanks

Matt

[Ty Coutts]

Hey Matt — sounds like a great next step in your investing journey! Making the move from 1–4 units into 5+ unit multifamily is a solid way to scale, and it does open the door to a different financing world — mostly commercial or asset-based lending.

Let’s walk through what you need to know:

 Financing Options for a 7-Unit Property

1. Commercial Multifamily Loan (Portfolio or Bank Loan)

• Typically offered by local/regional banks or credit unions

• Loan based on property performance (NOI/DSCR), not your personal DTI

• Terms: Usually 5–10 year fixed with 20–25 year amortization

• Down payment: Typically 20–25%

• May require a personal guarantee unless it's a non-recourse loan

2. DSCR Loan for Small Commercial Properties

• Some DSCR lenders offer programs for 5–8 unit properties

• Loan is based on Gross Rents vs. PITIA (debt coverage)

• No tax returns or income verification — just property cash flow, credit score, and reserves

• Great for experienced investors who want to scale without personal income limits

 Documentation You’ll Likely Need

Here’s a standard set of docs to prepare for either commercial or DSCR-style financing:

Property-Specific:

• Rent roll (current leases, even if month-to-month)

• T-12 or last 12 months of expenses (if available — pro forma if not)

• Purchase contract and seller disclosures

• Appraisal (ordered by lender)

Borrower-Specific:

• Credit report (680+ usually needed for DSCR, higher for bank loans)

• REO schedule (all properties you currently own)

• LLC docs (if buying in an entity)

• Resumes or investing experience (especially for first 5+ deal)

Optional but Helpful:

• Market rent comps (if you’re planning to increase rents)

• Rehab scope & budget (if value-add)

• Exit plan (hold/refi/sell — some lenders like seeing your strategy)

•  Quick Tips:

  • DSCR lenders have varied criteria, so shopping lenders is key (some want 1.20 DSCR, others will do 1.00)

  • Start prepping your property package now, even if you don’t have an accepted offer — it speeds up approvals

  • If you plan to BRRRR or refi later, make sure you're buying at a price where improved NOI justifies the future value

Happy to help you put together a sample loan package or connect you with lenders who work with 5–12 unit properties all the time. Let me know your goal — cash flow, refi potential, long-term hold? That helps fine-tune the best fit.