In San Diego, new rental purchases rarely cash flow at high leverage. Portfolios bought a decade ago are a different story: rents have climbed while Prop 13 has held tax bills near their old levels. A blanket loan lets you put that built-up equity and cash flow to work as one portfolio.
In short: LendingStreet finances five or more San Diego County investment properties, each 1 to 8 units, under one blanket DSCR loan qualified on the portfolio's combined cash flow. You get one closing, one payment, portfolio pricing and release provisions when you sell a property. Because San Diego prices are high relative to rents, most portfolio loans here land at moderate leverage, and long-held properties with low Prop 13 tax bases are what make the ratio work.
Inside the city, long-time landlords own bungalows and small multifamily in City Heights, North Park, Normal Heights, University Heights, Golden Hill and Clairemont, and newer investors have bought in Encanto, Paradise Hills and Logan Heights. Beach-area rentals in Pacific Beach and Ocean Beach carry high values and thinner yields.
East County cities such as El Cajon, La Mesa, Lemon Grove, Santee and Spring Valley, and South Bay cities such as Chula Vista and National City, offer lower prices and solid rental demand. North County inland, Escondido, Vista and San Marcos round out many portfolios. Each city has its own rental rules, and some newer areas carry Mello-Roos.
Under Prop 13, a property's assessed value is set at purchase and can rise by no more than 2% a year until it sells. A duplex bought in 2014 may carry a tax bill well under half of what a buyer would pay today. Refinancing does not trigger reassessment, so a blanket refinance keeps those low tax bases.
Retitling properties into a new LLC, or changing who controls the owning entity, can raise change-in-ownership questions. Talk with a California tax advisor before you move properties into a new entity for a portfolio loan.
This example is illustrative and not a quote. An investor refinances three single-family homes and two duplexes worth $4,275,000 in total, renting for $19,750 a month. Because of Prop 13, taxes total only $1,810 a month; insurance totals $780.
At 55% of value the blanket loan is $2,351,250, estimated principal and interest about $16,040 and the total payment about $18,630, a portfolio DSCR of about 1.06x. At 50% the loan is $2,137,500, the payment about $17,172 and the DSCR about 1.15x. If the same properties were bought today and taxed on current value, about $4,097 a month, the 55% DSCR would drop to about 0.94x.
That is the honest picture of San Diego: portfolio loans work, but usually at 50% to 60% of value, not 75%. For many owners, that still means significant cash out from properties that are free and clear or carry small balances.
| Property | Value | Monthly rent | Monthly tax |
|---|---|---|---|
| Single-family, City Heights (bought 2012) | $760,000 | $3,200 | $290 |
| Duplex, North Park (bought 2014) | $1,150,000 | $5,600 | $470 |
| Single-family, El Cajon (bought 2015) | $720,000 | $3,100 | $330 |
| Single-family, Lemon Grove (bought 2013) | $705,000 | $3,050 | $300 |
| Duplex, Chula Vista (bought 2016) | $940,000 | $4,800 | $420 |
| Total | $4,275,000 | $19,750 | $1,810 |
California's AB 1482 caps annual rent increases on many rentals older than 15 years and requires just cause for evictions after a tenancy has run a set time. The City of San Diego adds its own tenant protection ordinance, with just-cause and relocation requirements that apply from early in a tenancy.
Other cities in the county may have their own rules. Note each property's jurisdiction and plan rent increases within the applicable caps. The loan uses current rents and market rent for vacant units.
San Diego owners often sell a property or two to fund other plans and keep the rest. A release provision lets you sell one property and pay the loan down by its release price, set in the loan documents, without refinancing the whole portfolio.
Remember the Prop 13 effect when you plan a release. Selling a long-held, low-tax property removes strong cash flow from the portfolio, so the remaining properties must still clear the program's DSCR.
California carriers have tightened, and placing coverage on several properties can take time. East County homes near open space may face wildfire surcharges or FAIR Plan coverage. Coastal and older properties raise their own questions about roofs, plumbing and foundations.
Get current quotes for every property before you run the numbers, because renewal increases can move the portfolio ratio. On a five-property loan, a few hundred dollars a month of extra premium can take a portfolio from comfortable to tight, so use real quotes rather than last year's declarations pages.
Many San Diego investors have bought rentals in lower-cost states while keeping their California properties. Some programs allow properties in more than one state on one blanket loan, which can pair high-equity San Diego homes with higher-yield out-of-state rentals.
That pairing can help the ratio. A free-and-clear City Heights home with a low tax base adds equity and steady rent, while out-of-state rentals add yield. Together they can support terms that neither group would reach alone.
If some of your San Diego properties are owned in personal names and others in LLCs, list the owner of each. The team can tell you how the ownership affects the structure before you make any changes.
Separate DSCR loans keep each property independent, which can be simpler if you plan to sell soon. A blanket loan offers one payment and portfolio pricing. Our comparison page covers the trade-offs.
Send your rent roll, values, tax bills and loan balances through the form below or call (877) 298-1001. The team will run the portfolio at a few leverage levels and come back with options.
Five or more investment properties, each with 1 to 8 units.
Prices are high relative to rents. Many portfolios clear 1.0x at 50% to 60% of value rather than 75%.
Refinancing alone is not a change in ownership. Retitling into a new entity can be, so get tax advice before changing ownership.
Yes. Properties in different cities across the county can be on one loan.
Yes. A release provision lets you pay that property's release price, as long as the rest still qualifies.
They affect how fast rents can rise. The loan uses current rents, so plan increases within AB 1482 and local rules.
Some programs allow properties in more than one state on one loan.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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