Quadplexes Are Residential DSCR — Not Commercial
The single most important thing to know: 1-4 unit properties are residential DSCR. 5+ unit properties cross into commercial DSCR — different program, smaller lender pool, generally lower LTV and higher rates. A quadplex sits right at the top of the residential threshold, alongside duplexes and triplexes.
This matters because residential DSCR has the broader lender pool, the most competitive pricing, and the highest available LTV. If you've been told a quadplex requires commercial financing — that's wrong on residential 4-unit properties.
How DSCR Qualifies on a Quadplex
Same formula as any other DSCR loan: Gross Monthly Rent ÷ PITIA. The "gross monthly rent" is the combined rent from all four units. The PITIA is the payment + taxes + insurance + any HOA dues on the property as a whole.
Worked example:
- Quadplex purchase price: $650,000
- Down payment: 25% ($162,500) → loan amount $487,500
- Rate: 7.50%, 30-year fixed
- Monthly P&I: ~$3,408
- Taxes ($9,000/yr) + Insurance ($2,400/yr): $950/mo
- Total PITIA: $4,358
- Combined rent across 4 units ($1,250 × 4): $5,000
- DSCR: $5,000 ÷ $4,358 = 1.15
1.15 DSCR qualifies on every major residential DSCR program at 75% LTV with standard-tier pricing. Run your own numbers in our DSCR calculator.
Why Quadplexes Often Have Stronger DSCR Than SFRs
The math compounds in your favor:
- Rent stacks linearly with units. 4 units = roughly 4× the rent of an SFR in the same neighborhood (per-unit rents on small multifamily run somewhat below SFR rents, but not 4× lower).
- Payment scales sublinearly. A $650K quadplex doesn't have 4× the payment of a $200K SFR. Per-door cost is typically 20–35% lower.
- Property tax bases on assessed value, not unit count. Same effect — tax per unit is lower.
- Insurance is one policy, not four. Per-unit insurance cost is materially lower.
Net: a quadplex at 75% LTV often shows 1.20–1.40 DSCR in markets where the equivalent SFR shows 1.00–1.15. That difference can move you a pricing tier.
2026 Pricing on Quadplex DSCR Loans
| Tier | Rate Range | Max LTV | Min FICO |
|---|---|---|---|
| Best (1.25+ DSCR, 65% LTV) | 6.50–7.50% | 80% | 740+ |
| Standard (1.10–1.24 DSCR, 75% LTV) | 7.00–8.00% | 80% | 700 |
| Tight (1.00–1.09 DSCR, 75% LTV) | 7.50–8.50% | 75% | 660 |
| Sub-1.0 (no-ratio) | 8.25–9.25% | 70% | 680 |
Quadplex pricing is essentially identical to duplex/triplex pricing. Some lenders add a small 0.000–0.125% premium on 4-unit specifically; not enough to be material.
Things That Trip Up Quadplex DSCR Files
- Unit mix and vacancy. A quadplex with 3 leased units and 1 vacant on the appraisal date — most lenders will count the vacant unit at market rent from the appraiser's Form 1007. Some pull it to 75% of market. Verify with the lender before going under contract on a partially-vacant building.
- Appraisal cost. Quadplex appraisals are 2–4 unit residential — typically $800–$1,400 vs $500–$700 for SFR. Budget for it.
- Insurance complexity. Multifamily landlord insurance is its own category — get a quote before underwriting. Don't use SFR insurance assumptions.
- Local rental licensing. Some cities require landlord licensing on 4+ unit properties (NYC, Minneapolis, parts of MA). Doesn't block DSCR, but factor into closing timeline.
- "5th unit" complications. A property advertised as a quadplex but with an unpermitted 5th unit (basement apartment) gets messy fast. Either the appraiser counts it (now you're in 5+ unit commercial territory) or doesn't (you can't include its rent). Sort this in due diligence.
Have a Quadplex Deal Under Contract?
Get a quote across our wholesale lender panel. We close quadplex DSCR files weekly — typical 21–30 day timeline from app to fund.
Get My Quadplex Quote →Quadplex vs Triplex vs Duplex: Same Program, Different Math
From a lender's perspective, 2-unit, 3-unit, and 4-unit residential properties are all the same DSCR program. The math runs differently though:
- Duplex (2 units): Simplest small multifamily. Per-door cost is often higher than quadplex because the entire purchase cost spreads across only 2 units.
- Triplex (3 units): Middle ground. Less common inventory than duplexes or quadplexes in most markets.
- Quadplex (4 units): Maximum residential leverage. Combined rent typically delivers strongest DSCR per dollar invested.
Most experienced multifamily investors prefer quadplexes when available — better cash flow per dollar down, same residential financing, but real multifamily scale.
Should You Buy a Quadplex Instead of 4 SFRs?
Tradeoffs:
- Quadplex pros: One mortgage (vs 4), one insurance policy, one closing, lower per-door capex on shared systems (roof, foundation, HVAC if central).
- Quadplex cons: Single-asset concentration risk, single appraisal can scuttle the whole deal, geographically clustered (limits diversification), less liquid resale.
- 4 SFRs pros: Geographic diversification, easier individual resale, broader buyer pool when selling, less concentration risk.
- 4 SFRs cons: 4× the closings and underwriting work, 4× insurance policies, higher per-door financing costs, harder to manage at scale.
Both work. The quadplex path scales faster on management overhead. The SFR path diversifies risk and gives more exit flexibility.
Frequently Asked Questions
Yes. 1-4 unit residential properties qualify under standard DSCR programs. 75–80% LTV available, rates 7.00–8.50% on most 2026 files.
Same as any residential DSCR: 1.00 minimum at 75% LTV, 1.10–1.20 unlocks better pricing, 1.25+ best tier. Quadplexes often calculate stronger DSCR than SFRs due to stacked rent.
Residential. 1-4 units is residential DSCR; 5+ units crosses into commercial DSCR (different program, different pricing).
75–80% LTV on purchase. 80% LTV requires 720+ FICO and 1.20+ DSCR on most programs. Cash-out refi caps at 75% LTV.
Yes. Vacant units count at market rent from the appraiser's Form 1007. Some lenders apply a 25% vacancy haircut — verify before going under contract.