Washington multifamily loans fund non-owner-occupied 2–4 unit and small apartment acquisitions across the Puget Sound and inland corridors — where rent growth, tech employment, and supply constraints make per-door NOI the underwriting story, not your personal tax return.
For the full statewide program, start at DSCR loans Washington. This page focuses on multifamily-specific leverage, DSCR math, and metro risk — not a one-size state template.
Why Washington multifamily is a distinct thesis
Washington adds real local variables: non-judicial foreclosure with mediation steps, property tax near ~0.92% effective (varies sharply by county), and Seattle-area rent stabilization on select vintage buildings. Sponsors who treat Washington like a Sun Belt template lose margin at refi.
| Investor goal | How multifamily debt fits |
|---|---|
| Value-add acquisition | Hard money or bridge on basis + rehab |
| BRRRR exit | Stabilize units, refi when DSCR clears 1.15–1.30 |
| Portfolio scale | LLC vesting; extract equity for next door |
| Out-of-state sponsor | Washington asset qualifies on local rent roll |
Washington multifamily parameters (2026)
| Parameter | Typical range |
|---|---|
| 2–4 unit gross rent | $3,200–$6,500/mo (metro-dependent) |
| King County tax load | ~0.9%–1.1% effective — verify PIN |
| Target DSCR at 75% LTV | 1.15–1.30 |
| Cash-out LTV max | 75% on qualified files |
| Bridge / hard money term | 6–18 months IO |
Washington multifamily submarkets
| Metro | Typical basis | Rent band | Notes |
|---|---|---|---|
| Seattle core | $650K–$1.1M (2–4 unit) | $2,800–$4,500/unit | Thin flip spreads; strong DSCR on renovated stock |
| Tacoma / Pierce | $420K–$680K | $2,100–$3,200/unit | Better yield-on-cost than King County |
| Spokane | $280K–$480K | $1,400–$2,100/unit | Cash-flow market; lower basis BRRRR |
| Bellevue / Eastside | $750K+ | $3,200–$5,000/unit | Premium rents; appraisal discipline critical |
DSCR math step-by-step: Tacoma duplex
Gross rent: $2,650 × 2 = $5,300/mo Vacancy (6%): −$318 → $4,982 effective gross
Operating expenses:
- Property taxes: $420/mo (Pierce County)
- Insurance: $240/mo
- Maintenance reserve: $320/mo
- Property management (8%): $398/mo Total expenses: ~$1,378/mo
NOI: ~$3,604/mo
Refi at 75% LTV on $620K appraised → $465K loan at 8.0% 30yr → debt service ~$3,415/mo → DSCR ~1.06 (tight)
Sponsor options: refi at 70% LTV for DSCR ~1.15, raise rents to $2,800/door, or hold at lower leverage until rents catch up.
Worked example: Seattle rent-stabilized fourplex
A 1970s fourplex in Seattle may fall under rent-increase caps — underwrite modest annual rent growth, not Sun Belt escalation:
- Acquire + rehab on hard money: $780K purchase, $120K scope
- Stabilize at $2,400/door × 4 = $9,600/mo (at cap-compliant rents)
- NOI after 7% vacancy and Pierce/King tax load: ~$5,800/mo
- Refi target: 65% LTV on $1.05M ARV → $682K loan → DSCR ~1.18
Rent-stabilized stock demands conservative LTV, not aggressive cash-out.
Spokane value-add: lower basis BRRRR
| Line | Spokane fourplex |
|---|---|
| Purchase | $385,000 |
| Rehab | $95,000 |
| Stabilized gross rent | $5,200/mo ($1,300/door) |
| Appraised value | $545,000 |
| DSCR refi at 72% LTV | ~$392K loan, DSCR ~1.22 |
Spokane offers cash-flow-first multifamily when Seattle basis prices you out of coverage.
Washington multifamily risks
- Seattle rent stabilization — verify ordinance applicability by building vintage and unit count
- Earthquake and landslide — hillside Puget Sound stock needs geotech on scope
- Condo / HOA litigation — warrantability review on townhouse portfolios
- Environmental — older Seattle stock may need sewer lateral or asbestos line items in rehab budget
- Statewide rent-increase cap (2025+) — model turn times and vacancy conservatively on DSCR exit
Underwriting file for Washington multifamily
- Rent roll with executed leases per unit
- Scope of work on value-add acquisitions
- Insurance quote reflecting Washington peril (earthquake rider where required)
- LLC operating agreement and EIN
- 3–6 months debt service reserves
- Tax bill at post-close assessed value — not seller’s historical bill
Capital stack for Washington multifamily
| Phase | Product | Link |
|---|---|---|
| Acquisition + rehab | Hard money Washington | Bridge capital |
| Resale flip | Fix and flip Washington | ARV-based exit |
| Permanent hold | DSCR Washington | Long-term refi |
Washington multifamily scenarios we fund
- Recently rehabbed 2–4 unit that appraises above basis for cash-out refi
- Rate-and-term refi off maturing hard money on a Tacoma or Spokane hold
- Portfolio sponsor extracting equity from one Washington fourplex to scale
- Out-of-state owner qualifying on Washington NOI instead of W-2
Model every Washington multifamily refi in the DSCR calculator — King County tax reassessment after investor purchase is the most common reason coverage fails at permanent debt.
Pre-qualify for DSCR · DSCR calculator · (833) 264-7776
Puget Sound multifamily DSCR nuance
Seattle-Tacoma multifamily refi files need growth-management and reassessment diligence — wildfire smoke insurance inland does not price coastal submarkets. Model in-place rent on executed leases; STR pro forma fails DSCR at refi.
King County reassessment and Tacoma utility pass-throughs belong in the expense line before LTV sizing. Compare: Washington DSCR · DSCR calculator · Submit scenario.
Washington DSCR refi gates (small multifamily) — Seattle metro vs Spokane (2026)
- Seattle metro DSCR comps within 0.5 mi on matching bed/bath — permit backlog extends timelines; rental registration required; Spokane ($340K–$470K basis) uses a separate rent ceiling.
- Model basis on $485,000 – $725,000 with ~0.94% property tax at post-close assessed value — not seller homestead bills on Seattle metro parcels.
- non-judicial foreclosure (deed-of-trust foreclosure is common, with a required mediation step in some cases) — bridge-to-DSCR timing differs from stabilized refi packages.
Seattle metro hold exit · $1,700–$2,250 at 5.75%–10.5% · Seattle growth management and Tacoma reassessment — wildfire smoke insurance inland · DSCR Washington · (833) 264-7776.
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. All loans are subject to full underwriting. Jaken Finance Group only finances non-owner occupied investment properties.