Loan Scenario:

A newer investor who already owned a primary residence and other investment property set their sights on a two-unit rental in Otsego, and American Heritage Lending helped turn the opportunity into a closing. Small multifamily can be a powerful step up for a growing landlord, and our DSCR loan let the combined rents from both units drive the approval rather than the borrower’s personal income.

We funded the purchase at 77% loan-to-value on a $315,000 appraised value, delivering a $242,156 loan on a 30-year term with a debt-service coverage ratio above break-even. Financing a duplex on a coverage basis let the investor add two doors in a single transaction while keeping the long-term monthly structure manageable.

Otsego sits in southwest Michigan near Kalamazoo, a region where affordable entry prices and steady demand from a diversified regional economy make two-unit properties an efficient way to scale rental income. Duplexes in markets like this tend to stay occupied and spread risk across two tenancies, exactly the profile a DSCR structure is built to support. AHL was happy to help this Michigan investor grow from single properties into small multifamily, and we’re ready with the financing for the next addition.

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