How much do I need to put down on a 2–4 unit multi-family in Clayton, MO?

25% is the working minimum on a DSCR loan for this product — about $308,100 at the $1,232,400 price point modeled here — plus closing costs of roughly 2%–4% and three to six months of PITIA in reserves ($24,019 to $48,037). Putting more down improves the ratio and moves you into a better pricing tier, which is often the cheapest way to buy down the rate.

What DSCR ratio does a 2–4 unit multi-family in Clayton hit?

At the median basis modeled on this page, roughly 0.81x — $6,464 of creditable monthly income against $8,006 of PITIA. Most lenders want 1.0x or better for base pricing, several fund to 0.75x with a rate add-on, and no-ratio products exist for files that do not cash-flow at all. The ratio is property-specific, so the number on your address will differ.

Can I close a 2–4 unit multi-family in Clayton in an LLC?

Yes. DSCR loans are business-purpose loans, so title in an LLC, LP or trust is standard and does not change pricing. You will personally guarantee the note and provide the operating agreement, EIN and certificate of good standing. Conventional investor financing does not allow entity title, which is one of the main reasons investors choose DSCR even when they could document income.

Is a duplex in Clayton financed as residential or commercial?

Residential. Two-to-four unit properties stay on residential paper: 30-year fixed available, a Form 1025 appraisal with a per-unit rent schedule, and DSCR qualification on total rents. Five units and above moves to commercial underwriting with shorter terms and a balloon. That four-unit ceiling is why small multifamily is the sweet spot for most investors.

2–4 Unit Multi-Family · Clayton, MO

2–4 Unit Multi-Family Financing in Clayton, MO

Estimated 0.81x DSCR on a $1,232,400 2–4 unit multi-family with $308,100 down — qualified on the property's income, not your tax returns.

Modeled Purchase Price

$1,232,400

25% Down

$308,100

Loan Amount

$924,300

Est. Monthly PITIA

$8,006

Est. Monthly Rent

$6,464/mo

Est. DSCR Ratio

0.81x

2–4 Unit Multi-Family investing in Clayton

A 2–4 unit property in Clayton is still residential financing — it is underwritten on the 1025 Small Residential Income Property appraisal rather than a commercial rent roll, so you keep 30-year fixed terms while spreading vacancy risk across multiple doors. Losing one tenant in a duplex costs you roughly half your income instead of all of it.

At the Clayton median of $780,000, a 2–4 unit multi-family prices near $1,232,400 for a typical duplex — small multifamily trades at a premium per building but a discount per door. Minimum down is 25% ($308,100), leaving a loan of $924,300. Estimated all-in PITIA runs about $8,006 per month.

The Clayton ratio math on this product

Two units should produce roughly $6,464/month combined — about $3,232 per door, since per-unit rents in small multifamily typically sit below the detached market rent in Clayton. Against a PITIA of $8,006, that is an estimated DSCR ratio of 0.81x. That is below the 1.0 threshold, which is normal at this basis. Financing here works one of three ways — more money down, a no-ratio DSCR product, or qualifying on documented short-term rental revenue.

Underwriting notes specific to 2–4 unit files: the appraisal is a Form 1025 with a full rent schedule per unit, 25% down is the normal floor, and reserves are usually six months of PITIA rather than three. Expect a separate line item for common-area utilities, and confirm whether the units are separately metered — master-metered buildings shift a real expense onto you that the ratio math above does not carry.

Returns and structure

Return metrics at the Clayton median for this product: an estimated cap rate of 3.90%, and monthly cash flow of $1,543 negative at 25% down. Negative cash flow at the minimum down payment is common in appreciation-led markets; investors close the gap with a larger down payment, a purchase below median, an added unit, or a rate buydown. Note that the $924,300 loan amount exceeds the $806,500 conforming limit for St. Louis County, so agency pricing is off the table and this is a jumbo DSCR file.

Clayton property types compared

Property Type	Modeled Price	Min. Down	Est. Income	Est. DSCR
Single-Family Rental	$780,000	20% ($156,000)	$3,475/mo	0.65x
2–4 Unit Multi-Family (this page)	$1,232,400	25% ($308,100)	$6,464/mo	0.81x
Condo & Townhome	$561,600	20% ($112,320)	$2,745/mo	0.64x

All figures model a purchase at the Clayton median of $780,000 with the property-type adjustments described above, at an illustrative 7.50% DSCR rate on a 30-year fixed. Short-term rental income is shown after the standard lender haircut.

Figures on this page are modeled estimates derived from the Clayton median price and market rent, adjusted for 2–4 unit multi-family product characteristics. They are illustrative, not a loan offer or an appraisal. Actual pricing, rent, taxes, insurance, HOA dues and DSCR depend on the specific property and on conditions at the time of application.

Clayton 2–4 Unit Multi-Family FAQ

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0.65x est. DSCR

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0.64x est. DSCR

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