A typical South Bay rental portfolio was built one house at a time: a starter home in Alum Rock kept after a move, a duplex in Berryessa, a rental in Gilroy bought when prices there were lower. Each came with its own loan. A blanket loan can bring them together under one.
In short: LendingStreet offers blanket portfolio loans for San Jose investors who own five or more rentals of 1 to 8 units each across Santa Clara County and the wider Bay Area. The loan is qualified on combined portfolio rent against combined payment, taxes and insurance, with one closing, one payment and release provisions when you sell a property. Permitted ADUs, long-held Prop 13 tax bills and in-place rents all shape how much a South Bay portfolio can borrow.
Silicon Valley owners often accumulate rentals through job moves and stock vesting rather than a planned strategy, so their loans are scattered across lenders, terms and maturity dates. Consolidating gives them one payment, one maturity and one relationship to manage.
Others use a blanket refinance to pull equity from long-held homes to buy more rentals, to replace short-term loans used to build ADUs, or to move a group of properties into a single LLC structure for estate planning.
A blanket loan also helps owners who are tired of tracking several escrow accounts, insurance renewals and payment dates. One loan means one statement each month and one maturity to plan around, which is a real benefit for owners who manage their rentals around demanding day jobs.
Inside San Jose, rental portfolios often include homes in Alum Rock, Mayfair, Evergreen, Berryessa, Blossom Valley, Seven Trees, Santa Teresa, Cambrian and West San Jose. Older duplexes and small buildings cluster near downtown, Japantown, the Burbank area and the neighborhoods around San Jose State.
Outside the city, Santa Clara, Milpitas, Campbell and Sunnyvale add higher-rent homes near tech employers, while Morgan Hill and Gilroy offer more rent per dollar of value. A mix of the two usually produces a stronger portfolio DSCR than a group of high-value West Valley homes alone.
San Jose and its neighbors have seen thousands of backyard and garage ADUs built under state law. A permitted ADU adds rent to the property it sits on, and in a blanket loan that rent counts toward the portfolio total.
Underwriters will want the permit and certificate of occupancy for each ADU, plus a lease or market rent support. Unpermitted units are usually excluded. If you are finishing an ADU now, it may make sense to close the blanket loan after it is complete and leased, or to plan a later refinance.
San Jose's Apartment Rent Ordinance covers many buildings of three or more units built before late 1979 and limits annual increases. Other rentals may fall under California's statewide rent cap and just-cause rules unless an exemption applies. Underwriting uses the rent actually in place for occupied units.
Taxes follow Prop 13. A refinance does not trigger reassessment, so a portfolio of homes bought years ago often carries tax bills well below what a new buyer would pay. Changes in ownership, including some transfers into or between LLCs, can trigger reassessment, so speak with a tax advisor before retitling.
This example is illustrative and not a quote. An owner refinances six rentals into one blanket loan. Taxes reflect each property's existing Prop 13 assessment. Insurance is estimated at $230 a month per property.
At 55% of combined value the portfolio DSCR is only about 0.89x, and at 50% about 0.96x. At 45%, a blanket loan of $3,307,500 carries estimated principal and interest of about $22,563 and a monthly total of about $28,976, for a DSCR of about 1.04x on combined rent of $30,100. South Bay rents support less leverage than many other markets, and sub-1.0 programs exist for owners who want more.
| Property | Value | Monthly rent | Annual taxes |
|---|---|---|---|
| Alum Rock house with permitted ADU | $1,050,000 | $5,900 | $8,400 |
| Evergreen single-family | $1,350,000 | $4,300 | $11,500 |
| Berryessa duplex | $1,400,000 | $6,100 | $10,200 |
| Blossom Valley single-family | $1,150,000 | $3,900 | $7,600 |
| Santa Clara duplex | $1,500,000 | $6,400 | $12,800 |
| Gilroy single-family | $900,000 | $3,500 | $9,900 |
| Total | $7,350,000 | $30,100 | $60,400 |
Release provisions let you sell one property and remove it from the loan by paying down a set release amount, while the rest of the portfolio stays in place. The amount is written into the loan documents and varies by program.
In a South Bay portfolio, the Gilroy or Morgan Hill homes often carry the most rent relative to value. Selling one of those can lower the DSCR of what remains, so the release amount may need to reflect that. Plan your likely sales before closing. Our release clause guide explains how lenders set these amounts.
A blanket loan is simplest for owners who plan to hold most of the group for years. Owners who expect to sell several properties soon, or who want each property on its own terms, may prefer individual DSCR loans.
Some South Bay owners split the difference: a blanket loan on the core long-term holds and separate loans on the one or two properties they may sell or redevelop. We can price both ways so you can compare.
Send a property schedule with addresses, unit counts including ADUs, rent rolls, current loan balances, tax bills and insurance. A simple spreadsheet is fine to start; we will ask for leases and permits once the structure is clear. Note any ARO-covered buildings and any property you might sell in the next few years. Call (877) 298-1001 or use the form below and we will size the portfolio.
Five or more investment properties of 1 to 8 units each. A house with a permitted ADU counts as one property.
Yes, if the ADU is permitted and leased or supported by market rent. Unpermitted units are usually excluded.
Yes. Bay Area properties can be combined, and on some programs properties in more than one state.
A refinance does not trigger reassessment in California. Some changes in ownership, including certain LLC transfers, can.
The standard minimum is 1.0x. Sub-1.0 DSCR programs exist for some borrowers.
Yes. Release provisions let you sell a property and pay down the loan by the release amount set at closing.
Yes, up to 75% LTV on some programs, though South Bay rent levels usually support less. Many owners take a smaller cash-out that keeps the portfolio at or above 1.0x, then refinance again as rents rise.
No. The portfolio qualifies on its rent. LLC borrowers are standard, and you sign for the loan personally.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.