Looking for 4-Plexes Under $200K That Cash Flow – How to Finance With DSCR?

[Eduardo Cambil]

Hey BP community 👋

I’m actively looking to invest in affordable multifamily properties (4 units or less) anywhere in the U.S. My ideal scenario is:

• 4 units under $200,000 total purchase price

• Each unit rented at $800–$1,000/month

• Monthly gross income: $3,200–$4,000

• Goal: Net $2,000/month in cash flow from a single deal

I’m exploring using a DSCR loan (Debt-Service Coverage Ratio loan) for financing, since I'm not a U.S. citizen (I'm based in Spain), and I'm partnering with someone who lives in Texas. We're aiming to buy through an LLC.

💸 Example of What I Want:

If I found a 4-plex at $180,000, and it rents for $1,000/unit, here’s what I imagine:

• Total income: $4,000/month

• DSCR loan at 75% LTV: $135,000

• Interest rate: ~8.5% (fixed), 30-year term

• P&I payment: ~$1,037/month

• Taxes + Insurance: ~$300/month

• Other reserves (mgmt/repairs): $500/month

Net cash flow: Around $2,100/month

❓My Questions:

1. Where can I find deals like this? Any markets you recommend where 4-plexes are still below $200K?

2. Are there lenders doing DSCR loans for 4-units in this price range?

3. Any red flags to watch out for when evaluating cheap 4-unit properties in smaller towns?

4. Are there platforms or wholesalers you recommend to find these types of multifamily deals?

Any insight would be super appreciated 🙏 I’m trying to structure my first big cash-flowing deal using Other People’s Money and want to learn from those already doing it.

Thanks in advance!

[Chris Seveney]

Quote from @Eduardo Cambil:

Hey BP community 👋

I’m actively looking to invest in affordable multifamily properties (4 units or less) anywhere in the U.S. My ideal scenario is:

• 4 units under $200,000 total purchase price

• Each unit rented at $800–$1,000/month

• Monthly gross income: $3,200–$4,000

• Goal: Net $2,000/month in cash flow from a single deal

I’m exploring using a DSCR loan (Debt-Service Coverage Ratio loan) for financing, since I'm not a U.S. citizen (I'm based in Spain), and I'm partnering with someone who lives in Texas. We're aiming to buy through an LLC.

💸 Example of What I Want:

If I found a 4-plex at $180,000, and it rents for $1,000/unit, here’s what I imagine:

• Total income: $4,000/month

• DSCR loan at 75% LTV: $135,000

• Interest rate: ~8.5% (fixed), 30-year term

• P&I payment: ~$1,037/month

• Taxes + Insurance: ~$300/month

• Other reserves (mgmt/repairs): $500/month

Net cash flow: Around $2,100/month

❓My Questions:

1. Where can I find deals like this? Any markets you recommend where 4-plexes are still below $200K?

2. Are there lenders doing DSCR loans for 4-units in this price range?

3. Any red flags to watch out for when evaluating cheap 4-unit properties in smaller towns?

4. Are there platforms or wholesalers you recommend to find these types of multifamily deals?

Any insight would be super appreciated 🙏 I’m trying to structure my first big cash-flowing deal using Other People’s Money and want to learn from those already doing it.

Thanks in advance!

 If you find deals like that they are going to be in a war zone or an area that is on paper will look great but in reality they will be very costly.