Virginia small multifamily, one rent roll at a time

Count legal units, not listing labels

A converted garage or separate entrance does not establish an approved dwelling. Compare the assessor record, zoning and permit history with the actual layout. Clarify shared utility meters, access and parking before relying on a rent roll.

Reconcile leases and operating obligations

Provide each lease, occupancy status and collected rent. Identify concessions and owner-paid utilities. Ask whether the program uses residential DSCR methodology or a commercial operating-income analysis; they are not interchangeable.

Richmond rowhouses, Roanoke conversions and buildings near university campuses can have different maintenance and turnover patterns. Budget for common spaces, insurance and capital work separately from a simple housing-payment ratio.

Choose a structure that matches the asset

Wholesale lenders set property size, condition, entity and guarantee criteria. We arrange comparisons around the actual building, not an assumed universal program. Explain any mixed use or unusual tenancy at the start.

A unit-by-unit coverage example

Consider a legal duplex in Roanoke with leases of $1,100 and $1,050. Total rent is $2,150. If your quoted principal and interest, city taxes and building insurance total $1,800 a month, the ratio is about 1.19. If one unit is vacant and only market rent support is available for it, the lender decides how much of that rent to accept, and the ratio can change. Owner-paid water, common-area electric and trash do not usually sit in the DSCR denominator, but they reduce your actual cash flow; budget them separately.

For 5-10 unit buildings, expect closer attention to the rent roll, operating statements and property condition. Read our tenant-occupied purchase guide before buying a building with existing leases.