In Bend, the deals that slip away are usually the ones that need speed: an estate sale with a two-week deadline, a fourplex that hits the market while your Redmond rental is still in escrow, or a seller who will take less for certainty. A bridge loan exists for exactly those windows.
In short: LendingStreet makes residential investor bridge loans on 1-8 unit properties in Bend, Redmond and across Deschutes County from $150,000 to $5M+, with rates from 7.99%, interest-only payments and closings in as little as 10 days. Some bridge programs need no appraisal. The exit is a sale or a refinance into a long-term DSCR loan once the property is stabilized or your other sale closes.
Central Oregon has a thin supply of small multifamily and a steady stream of buyers from Portland, California and Seattle. Good 2-8 unit properties and well-located single-family rentals often go to the buyer who can close first and cleanly. A long-term lender's timeline can be too slow when a seller has multiple offers.
Bridge loans also fit properties that are not ready for a 30-year loan yet: a vacant house that needs a tenant, a vacation home moving from nightly to long-term rental, a home with an unfinished ADU, or a property with title or permit clean-up to do before it can be refinanced.
| Bend situation | How a bridge loan helps | Typical exit |
|---|---|---|
| Buy a new rental before selling another | Close now, pay down when your sale closes | DSCR refinance at lower leverage |
| Estate, trust or auction purchase | Close on a short deadline | DSCR refinance or resale |
| Vacant or between-tenant property | Finance before there is a lease | DSCR refinance after lease-up |
| STR shifting to long-term rental | Hold while you re-tenant | DSCR refinance on the new lease |
| Light updates before renting | Short-term, interest-only carry | DSCR refinance |
Many Bend investors own older rentals in Redmond, La Pine or Prineville and want to trade into a larger property closer to town. Timing two closings is hard. With a bridge loan you can close on the new property first, then use the sale proceeds from the old one to pay the bridge loan down and refinance into a DSCR loan.
If you are doing a 1031 exchange, coordinate with your qualified intermediary before structuring the timing. Exchange rules have strict deadlines, and the order of closings matters.
This example is illustrative and not a quote. An investor finds a Bend fourplex listed at $1,150,000 while a Redmond rental is still in escrow. A bridge loan at 70% of the price, $805,000, lets the investor close in about two weeks. The estimated interest-only payment is about $6,205 a month.
Four months later the Redmond sale closes, and the investor uses about $57,500 of the proceeds to pay the balance down to 65% of the purchase price. A DSCR loan of $747,500 replaces the bridge loan. With four units leasing for $1,750 each, combined rent is $7,000, the estimated full payment is about $5,936, and the ratio is about 1.18x.
Total bridge interest in this example is about $24,821. That is the cost of not losing the fourplex to a faster buyer.
| Stage | Amount |
|---|---|
| Fourplex purchase price | $1,150,000 |
| Bridge loan at 70% of price | $805,000 |
| Estimated monthly interest-only payment | $6,205 |
| Estimated interest over 4 months | $24,821 |
| Paydown from Redmond sale proceeds | $57,500 |
| DSCR loan at 65% of price | $747,500 |
| Estimated principal and interest on the DSCR loan | $5,036 |
| Taxes and insurance | $900 |
| Combined rent, four units | $7,000 |
| DSCR after refinance | About 1.18x |
Speed depends on title, insurance and the valuation. Some bridge programs need no appraisal and rely on other valuation methods, which can save a week or more. Larger balances and unusual properties, like homes on acreage or properties with several structures, usually need a full appraisal.
Order title early. Properties in Deschutes County subdivisions often come with recorded CC&Rs and road maintenance agreements, and rural parcels can have easement questions. Have your insurance agent ready to bind coverage, and expect the wildfire question for homes near the forest edge.
Oregon does not allow new local real estate transfer taxes, and Deschutes County does not charge one, so closing costs are mainly title insurance, escrow, recording fees and lender fees. That makes short holds less costly here than in states with large transfer taxes.
Property taxes under Oregon's assessed value limits are often moderate for older homes. For newer homes, check the county record, since new construction is added to the roll differently. Prorated taxes are due at closing.
The most common bridge exit in Bend is a refinance into a 30-year DSCR loan. Because Bend rents are modest compared with prices, the refinance often needs a lower loan amount than the bridge. Run the DSCR numbers at the refinance stage before you close the bridge loan so you know how much cash, if any, you will need to bring.
Oregon's rent increase cap and tenant protections apply to most long-term rentals, so underwrite the refinance on realistic market rent and any leases you will inherit.
Bridge loans run up to $5M+ on 1-8 unit property. Larger balances, packages of rentals and high-value homes on the west side or in resort areas are reviewed case by case and usually need a full valuation. For buildings of 9 or more units, see our multifamily lending.
Some Bend and Sunriver owners have moved properties from nightly rental to long-term leases because of permit limits, rising operating costs or changing demand. A property in that transition has no long-term lease to qualify on yet, which makes a DSCR loan harder to close on day one.
A bridge loan can carry the property for a few months while you furnish or unfurnish, list it and sign a 12-month lease. Once the lease is in place, a DSCR loan can replace the bridge loan using that rent. If the property will stay a nightly rental and qualifies under a short-term rental program, you may be able to skip the bridge step entirely.
Tell us the property, price, closing deadline and how you plan to exit. We can usually give you a term sheet quickly so you can write a firm offer. Call (877) 298-1001 or use the form below.
In as little as 10 days when title, insurance and the valuation are in order.
Bridge rates start from 7.99%, depending on leverage, property, experience and loan size.
Some bridge programs need no appraisal. Larger balances and unusual properties usually require one.
Yes. Close on the new property, then pay down or refinance after your sale closes. Coordinate any 1031 exchange timing with your intermediary.
1-8 unit residential investment property, including single-family homes, homes with ADUs, duplexes, triplexes, fourplexes and 5-8 unit buildings.
By selling or by refinancing into a DSCR loan that qualifies on the property's rent.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Deschutes County does not charge a real estate transfer tax. Budget for title, escrow, recording and lender fees, and confirm current costs with your title company.
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