Looking for Portfolio / Small-Balance DSCR Lender

Lender · Boca Raton, FL · Member since 2014 · 1k+ posts · 958 votes

7mo

I’m looking to connect with portfolio lenders or DSCR lenders that are comfortable with small-balance rental loans.

We are currently structuring a 3-property transaction in Decatur, IL:

• Refinance 1 existing rental (currently under contract-for-deed)
• Purchase 2 additional SFRs at the same time

The challenge we're running into with many national DSCR lenders is minimum loan size requirements ($75K–$100K) and very high fixed closing costs, which become inefficient on smaller loans.

So we’re specifically looking for portfolio lenders, community banks, or DSCR lenders that operate comfortably in the $40K–$60K loan range.

1️⃣ Refinance – Existing Rental

419 E Peoria Ave – Decatur, IL

• Purchased Sept 2025 via Agreement for Deed
• Purchase price: ~$56,900
• ~$6K down
• Currently rented at $1,200/month since October
• Tenant occupied and rent-ready
• Current seller payment: $744/month

Estimated value based on comps: ~$70K–$90K

Goal: DSCR refinance around 70–75% LTV to pay off the seller

Expected loan size: ~$55K–$60K depending on appraisal

2️⃣ Purchase – Property #1

1484 E Clay St – Decatur, IL

• Purchase price: $52,000
• 3 bed / 1 bath
• Recently remodeled
• Metal roof
• Rent-ready

Expected rent: ~$1,100–$1,200/month

3️⃣ Purchase – Property #2

Similar profile property in the same market:

• Purchase price roughly $50K–$60K range
• Rent-ready
• Expected rent ~$1,100–$1,200/month

What we are looking for

Ideally a lender that can structure:

• Portfolio DSCR or small-balance rental loans
• Simultaneous refinance + acquisitions
• Loan sizes roughly $40K–$60K each
• Rates around ~7% or below
• Reasonable lender/broker fees relative to loan size
• Ability to close quickly

We’ve already received competitive indications around ~7% with minimum ~$50K appraisals, so the main focus is finding lenders comfortable working in this small-balance DSCR space.

If you are a portfolio lender, community bank, private lender, or broker with access to these programs, feel free to reach out.

Happy to share full details.

Eduardo Cambil
[email protected]

Hi Eduardo, those look to be good deals if you can fund them. Obviously it seems you already understand loan size will be an issue from most lenders. Have you reached out to local REIA's? You may find private lenders that can do this.

Also, what does "We’ve already received competitive indications around ~7% with minimum ~$50K appraisals, so the main focus is finding lenders comfortable working in this small-balance DSCR space." mean? Do you already have offers at 7%? If so, why are you not taking them?

1 Reply

Eduardo Cambil
OP
Investor · USA · Member since 2024 · 144 posts · 48 votes
7mo
Quote from @Scott Wolf:

Quote from @Eduardo Cambil:

I’m looking to connect with portfolio lenders or DSCR lenders that are comfortable with small-balance rental loans.

We are currently structuring a 3-property transaction in Decatur, IL:

• Refinance 1 existing rental (currently under contract-for-deed)
• Purchase 2 additional SFRs at the same time

The challenge we're running into with many national DSCR lenders is minimum loan size requirements ($75K–$100K) and very high fixed closing costs, which become inefficient on smaller loans.

So we’re specifically looking for portfolio lenders, community banks, or DSCR lenders that operate comfortably in the $40K–$60K loan range.

1️⃣ Refinance – Existing Rental

419 E Peoria Ave – Decatur, IL

• Purchased Sept 2025 via Agreement for Deed
• Purchase price: ~$56,900
• ~$6K down
• Currently rented at $1,200/month since October
• Tenant occupied and rent-ready
• Current seller payment: $744/month

Estimated value based on comps: ~$70K–$90K

Goal: DSCR refinance around 70–75% LTV to pay off the seller

Expected loan size: ~$55K–$60K depending on appraisal

2️⃣ Purchase – Property #1

1484 E Clay St – Decatur, IL

• Purchase price: $52,000
• 3 bed / 1 bath
• Recently remodeled
• Metal roof
• Rent-ready

Expected rent: ~$1,100–$1,200/month

3️⃣ Purchase – Property #2

Similar profile property in the same market:

• Purchase price roughly $50K–$60K range
• Rent-ready
• Expected rent ~$1,100–$1,200/month

What we are looking for

Ideally a lender that can structure:

• Portfolio DSCR or small-balance rental loans
• Simultaneous refinance + acquisitions
• Loan sizes roughly $40K–$60K each
• Rates around ~7% or below
• Reasonable lender/broker fees relative to loan size
• Ability to close quickly

We’ve already received competitive indications around ~7% with minimum ~$50K appraisals, so the main focus is finding lenders comfortable working in this small-balance DSCR space.

If you are a portfolio lender, community bank, private lender, or broker with access to these programs, feel free to reach out.

Happy to share full details.

Eduardo Cambil
[email protected]

Hi Eduardo, those look to be good deals if you can fund them. Obviously it seems you already understand loan size will be an issue from most lenders. Have you reached out to local REIA's? You may find private lenders that can do this.
Also, what does "We’ve already received competitive indications around ~7% with minimum ~$50K appraisals, so the main focus is finding lenders comfortable working in this small-balance DSCR space." mean? Do you already have offers at 7%? If so, why are you not taking them?

Thanks Scott, I appreciate the input.

Yes, we have received a couple of indications around the ~7% range, but the issue we keep running into is that those lenders typically only finance properties individually, not as part of a small SFR portfolio.

When we ask about portfolio structures, the lenders that are willing to do them usually push the rates closer to ~8.5%, especially when dealing with smaller properties in the $50K–$80K value range.

So the challenge we’re trying to solve is essentially this:

• Single-property DSCR loans → around ~7%, but higher relative closing costs per property.
• Portfolio loans → easier operationally long-term, but rates jump closer to ~8–8.5%.

Since our goal is to continue acquiring several small rentals and eventually hold them as a portfolio of stabilized SFRs, we’re trying to understand whether there are lenders comfortable operating in that small-balance portfolio DSCR space without pushing rates that high.

That’s really the gap we’re trying to solve right now.

Appreciate the suggestion on the REIA groups as well — that's something we'll likely explore too.
0 Reply
Scott WolfPro Member
Lender · Boca Raton, FL · Member since 2014 · 1k+ posts · 958 votes
7mo
Quote from @Eduardo Cambil:

Quote from @Scott Wolf:

Quote from @Eduardo Cambil:

I’m looking to connect with portfolio lenders or DSCR lenders that are comfortable with small-balance rental loans.

We are currently structuring a 3-property transaction in Decatur, IL:

• Refinance 1 existing rental (currently under contract-for-deed)
• Purchase 2 additional SFRs at the same time

The challenge we're running into with many national DSCR lenders is minimum loan size requirements ($75K–$100K) and very high fixed closing costs, which become inefficient on smaller loans.

So we’re specifically looking for portfolio lenders, community banks, or DSCR lenders that operate comfortably in the $40K–$60K loan range.

1️⃣ Refinance – Existing Rental

419 E Peoria Ave – Decatur, IL

• Purchased Sept 2025 via Agreement for Deed
• Purchase price: ~$56,900
• ~$6K down
• Currently rented at $1,200/month since October
• Tenant occupied and rent-ready
• Current seller payment: $744/month

Estimated value based on comps: ~$70K–$90K

Goal: DSCR refinance around 70–75% LTV to pay off the seller

Expected loan size: ~$55K–$60K depending on appraisal

2️⃣ Purchase – Property #1

1484 E Clay St – Decatur, IL

• Purchase price: $52,000
• 3 bed / 1 bath
• Recently remodeled
• Metal roof
• Rent-ready

Expected rent: ~$1,100–$1,200/month

3️⃣ Purchase – Property #2

Similar profile property in the same market:

• Purchase price roughly $50K–$60K range
• Rent-ready
• Expected rent ~$1,100–$1,200/month

What we are looking for

Ideally a lender that can structure:

• Portfolio DSCR or small-balance rental loans
• Simultaneous refinance + acquisitions
• Loan sizes roughly $40K–$60K each
• Rates around ~7% or below
• Reasonable lender/broker fees relative to loan size
• Ability to close quickly

We’ve already received competitive indications around ~7% with minimum ~$50K appraisals, so the main focus is finding lenders comfortable working in this small-balance DSCR space.

If you are a portfolio lender, community bank, private lender, or broker with access to these programs, feel free to reach out.

Happy to share full details.

Eduardo Cambil
[email protected]

Hi Eduardo, those look to be good deals if you can fund them. Obviously it seems you already understand loan size will be an issue from most lenders. Have you reached out to local REIA's? You may find private lenders that can do this.
Also, what does "We’ve already received competitive indications around ~7% with minimum ~$50K appraisals, so the main focus is finding lenders comfortable working in this small-balance DSCR space." mean? Do you already have offers at 7%? If so, why are you not taking them?

Thanks Scott, I appreciate the input.

Yes, we have received a couple of indications around the ~7% range, but the issue we keep running into is that those lenders typically only finance properties individually, not as part of a small SFR portfolio.

When we ask about portfolio structures, the lenders that are willing to do them usually push the rates closer to ~8.5%, especially when dealing with smaller properties in the $50K–$80K value range.

So the challenge we’re trying to solve is essentially this:

• Single-property DSCR loans → around ~7%, but higher relative closing costs per property.
• Portfolio loans → easier operationally long-term, but rates jump closer to ~8–8.5%.

Since our goal is to continue acquiring several small rentals and eventually hold them as a portfolio of stabilized SFRs, we’re trying to understand whether there are lenders comfortable operating in that small-balance portfolio DSCR space without pushing rates that high.

That’s really the gap we’re trying to solve right now.

Appreciate the suggestion on the REIA groups as well — that's something we'll likely explore too.

Thanks for clarifying. Have you run the math on the closing costs vs. the higher rates and where the breakeven is? You can also ask the lender if you bring them 3(or more) loans, will they cut a break on some of the fees per loan?
Seems like you don't have tons of options, so work with what you got. As they say, a bird in the hand is worth two in the bush.
Good luck!
0 Reply
Eduardo Cambil
OP
Investor · USA · Member since 2024 · 144 posts · 48 votes
7mo
Quote from @Scott Wolf:

Quote from @Eduardo Cambil:

Quote from @Scott Wolf:

Quote from @Eduardo Cambil:

I’m looking to connect with portfolio lenders or DSCR lenders that are comfortable with small-balance rental loans.

We are currently structuring a 3-property transaction in Decatur, IL:

• Refinance 1 existing rental (currently under contract-for-deed)
• Purchase 2 additional SFRs at the same time

The challenge we're running into with many national DSCR lenders is minimum loan size requirements ($75K–$100K) and very high fixed closing costs, which become inefficient on smaller loans.

So we’re specifically looking for portfolio lenders, community banks, or DSCR lenders that operate comfortably in the $40K–$60K loan range.

1️⃣ Refinance – Existing Rental

419 E Peoria Ave – Decatur, IL

• Purchased Sept 2025 via Agreement for Deed
• Purchase price: ~$56,900
• ~$6K down
• Currently rented at $1,200/month since October
• Tenant occupied and rent-ready
• Current seller payment: $744/month

Estimated value based on comps: ~$70K–$90K

Goal: DSCR refinance around 70–75% LTV to pay off the seller

Expected loan size: ~$55K–$60K depending on appraisal

2️⃣ Purchase – Property #1

1484 E Clay St – Decatur, IL

• Purchase price: $52,000
• 3 bed / 1 bath
• Recently remodeled
• Metal roof
• Rent-ready

Expected rent: ~$1,100–$1,200/month

3️⃣ Purchase – Property #2

Similar profile property in the same market:

• Purchase price roughly $50K–$60K range
• Rent-ready
• Expected rent ~$1,100–$1,200/month

What we are looking for

Ideally a lender that can structure:

• Portfolio DSCR or small-balance rental loans
• Simultaneous refinance + acquisitions
• Loan sizes roughly $40K–$60K each
• Rates around ~7% or below
• Reasonable lender/broker fees relative to loan size
• Ability to close quickly

We’ve already received competitive indications around ~7% with minimum ~$50K appraisals, so the main focus is finding lenders comfortable working in this small-balance DSCR space.

If you are a portfolio lender, community bank, private lender, or broker with access to these programs, feel free to reach out.

Happy to share full details.

Eduardo Cambil
[email protected]

Hi Eduardo, those look to be good deals if you can fund them. Obviously it seems you already understand loan size will be an issue from most lenders. Have you reached out to local REIA's? You may find private lenders that can do this.
Also, what does "We’ve already received competitive indications around ~7% with minimum ~$50K appraisals, so the main focus is finding lenders comfortable working in this small-balance DSCR space." mean? Do you already have offers at 7%? If so, why are you not taking them?

Thanks Scott, I appreciate the input.

Yes, we have received a couple of indications around the ~7% range, but the issue we keep running into is that those lenders typically only finance properties individually, not as part of a small SFR portfolio.

When we ask about portfolio structures, the lenders that are willing to do them usually push the rates closer to ~8.5%, especially when dealing with smaller properties in the $50K–$80K value range.

So the challenge we’re trying to solve is essentially this:

• Single-property DSCR loans → around ~7%, but higher relative closing costs per property.
• Portfolio loans → easier operationally long-term, but rates jump closer to ~8–8.5%.

Since our goal is to continue acquiring several small rentals and eventually hold them as a portfolio of stabilized SFRs, we’re trying to understand whether there are lenders comfortable operating in that small-balance portfolio DSCR space without pushing rates that high.

That’s really the gap we’re trying to solve right now.

Appreciate the suggestion on the REIA groups as well — that's something we'll likely explore too.

Thanks for clarifying. Have you run the math on the closing costs vs. the higher rates and where the breakeven is? You can also ask the lender if you bring them 3(or more) loans, will they cut a break on some of the fees per loan?
Seems like you don't have tons of options, so work with what you got. As they say, a bird in the hand is worth two in the bush.
Good luck!

Thanks Scott, that’s a fair point and yes, we did run the numbers.

The challenge we’re seeing is that the lender we’ve been discussing with isn’t very flexible on the fee structure, and the interest rate also stays roughly the same, even if we bring multiple loans to them.

So the math ends up looking something like this:

• ~$5K–$6K in closing costs per property
• Similar rate even if we bring multiple loans
• No meaningful reduction in origination or underwriting fees

Because of that, the breakeven doesn’t improve much even when doing several loans.

That’s really the reason I made the post — to see whether there are portfolio lenders comfortable in the small-balance DSCR space ($50K–$80K properties) that might offer rates closer to the ~7% range while packaging several properties together, rather than financing each property individually with the same fee structure every time.

If lenders are willing to adjust fees or pricing when bringing multiple properties, that would obviously change the math quite a bit.

Appreciate the perspective.
1 Reply

Steven Baum

Member since 2025 · 146 posts · 4 votes

7mo

Happy to run the numbers, let's connect

0 Reply

Eduardo Cambil
OP
Investor · USA · Member since 2024 · 144 posts · 48 votes
7mo
Quote from @Steven Baum:

Happy to run the numbers, let's connect

Sure, email me at [email protected]
0 Reply

Matthew Bernal

Investor · Austin, TX · Member since 2021 · 497 posts · 127 votes

7mo

I would be happy to connect @Eduardo Cambil.

1 Reply

Looking for Portfolio / Small-Balance DSCR Lender – Acquire 2 SFRs + Refinance 1

Looking for Portfolio / Small-Balance DSCR Lender – Acquire 2 SFRs + Refinance 1

1️⃣ Refinance – Existing Rental

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