In a college town, the calendar decides when a rental is worth the most. A fourplex near the University of Arkansas with empty units in May can be fully leased by August, and a bridge loan is how investors buy in spring and refinance after the new school year starts.
In short: LendingStreet offers residential investor bridge loans on 1-8 unit properties across Fayetteville, Springdale, Rogers, Bentonville and the rest of Northwest Arkansas from $150,000 to $5M+, with rates from 7.99% and closings in as little as 10 days. Some bridge programs require no appraisal. Bridge loans are short-term and interest-only, with a sale or a DSCR refinance as the exit.
The metro's growth creates competition for good properties, and speed wins. Bridge loans also cover the gap when a property is not ready for long-term financing yet.
A bridge loan buys time. It is not meant to be held for years, so the plan for getting out should be clear on day one: lease and refinance, or finish light work and sell.
Core terms for our 1-8 unit investor bridge program are below. Final terms depend on the property, your experience and the exit plan.
Leverage depends on the property and the plan. A building with signed leases for the coming school year and a clear refinance path gets more room than a vacant one bought in June.
| Term | Bridge program |
|---|---|
| Loan amount | $150,000 to $5M+ |
| Rates | From 7.99% |
| Closing | As little as 10 days |
| Appraisal | Not required on some bridge programs |
| Payments | Interest-only |
| Properties | 1-8 unit non-owner-occupied residential |
| Exit | Sale or refinance into a DSCR loan |
This example is illustrative and not a quote. In April, an investor buys a fourplex a short walk from campus for $765,000. Two units are vacant and the other two have leases ending in July. A bridge loan at 75% of the price is $573,750, with an estimated interest-only payment of about $5,020 a month.
Over the summer the investor refreshes the units and signs four leases at $1,450 starting in August, for $5,800 a month. The property appraises at $850,000. A DSCR refinance at 75% LTV is $637,500, which repays the bridge loan. Estimated principal and interest is about $4,457; with taxes of $520 and insurance of $330, the payment is about $5,307 and the DSCR is about 1.09x.
| Stage | Amount |
|---|---|
| April purchase price | $765,000 |
| Bridge loan (75%) | $573,750 |
| Estimated bridge payment | $5,020 |
| Value after August lease-up | $850,000 |
| DSCR refinance at 75% LTV | $637,500 |
| Total DSCR payment | $5,307 |
| Monthly rent | $5,800 |
| DSCR | About 1.09x |
Student demand peaks months before the school year. Many students sign for the next year in the fall and winter, and by late spring the best units near campus are spoken for. If you buy a building with vacancies in June, you may be leasing to the last students looking, or waiting another year.
The safest bridge-to-DSCR plans near campus close in early spring, turn units over the summer, and refinance once August leases start. Build a cushion of a few extra months of interest into the plan in case lease-up runs late.
For a refinance, model the long-term payment with taxes at Arkansas's 20% assessment ratio, a realistic insurance quote and market rents, not the seller's pro forma. Per-bedroom student leases are common; the rent used is what the leases support.
For a sale, look at recent sales of similar properties in the same part of town. Investor buyers near campus price on rent; owner-occupant buyers in south Fayetteville or Rogers price on comparable homes.
If the plan is a refinance, check the HOA or city rules on occupancy for unrelated tenants before you count on per-bedroom rent, since those limits cap how many leases a unit can carry.
Interest-only payments keep carry lower, but plan for the full picture from the start.
Near campus, also budget for furnishing if you plan to offer furnished units, which many students expect.
Arkansas closings generally run through a title company. Order title early on older campus-area properties, since long-held rentals sometimes carry old liens, estate questions or unrecorded agreements that take time to clear.
Insurance is the other gating item. Carriers look at roof age and hail history, and older multi-unit buildings near campus may need updated electrical or fire separation before a policy is written. Start the insurance quote the day you go under contract.
If the property needs a full renovation with a line-item budget, a fix and flip loan with rehab draws usually fits better. If it is already leased at market rent, a straight DSCR purchase is simpler. Bridge financing fits property that is close to ready and needs time, tenants or a quick close.
Some investors buy quickly on a bridge loan and then decide on the scope of work. If the work grows into a renovation, talk to us before you start so the structure matches the plan.
Share the address, price, current leases and your exit with the form below, or call (877) 298-1001. Our investor loans are business-purpose loans on non-owner-occupied property. We will tell you quickly whether a bridge, fix and flip or DSCR loan fits best.
We also finance bridge loans in Little Rock, Hot Springs, Conway, Fort Smith and elsewhere in the state. See our Arkansas bridge loan page for statewide details.
Rates start from 7.99%. Your terms depend on leverage, the property, your experience and the exit plan. We will show you the payment at the loan amount you need before you commit.
In as little as 10 days when title, insurance and entity documents are ready. Fast closings depend on starting title and insurance immediately.
Some bridge programs require no appraisal. Others do, depending on the property and loan size. The exit DSCR refinance will typically need one.
Early spring, so units can be turned over the summer and leased for August. Buying in June leaves less time to lease. Build a few extra months of interest into the plan in case lease-up runs late.
Yes, the DSCR refinance uses the rent the leases support. Signed leases make the file stronger.
This program covers 1-8 units. Larger buildings are commercial property. See our commercial loan pages for those.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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