In Madison, the calendar matters as much as the price. A building bought in spring can be leased for the August 15 turnover; the same building bought in September may sit half-empty for a year. Bridge loans help investors close on the right schedule.
In short: LendingStreet offers residential investor bridge loans on 1-8 unit properties in Madison and across Dane County from $150,000 to $5M+, with rates from 7.99% and closings in as little as 10 days. Bridge loans are short-term and interest-only, and some bridge programs require no appraisal. Most borrowers exit by refinancing into a DSCR rental loan once the property is leased, or by selling.
A long-term DSCR lender wants a leased, stable property. Many Madison opportunities are not there yet: a campus-area fourplex with leases ending and no renewals signed, a two-flat sold by an estate with one unit vacant, or a property where the seller needs to close in two weeks. A bridge loan finances the purchase now and gives you time to lease and stabilize.
Landlords also use bridge loans to buy their next property before selling one they already own, which helps in a market with limited inventory. Speed matters too: well-located Madison rentals often draw several offers, and a short, certain closing can win a contract.
These are the core terms on our residential investor bridge programs. Leverage and pricing depend on the property, your experience and the exit plan.
| Term | Residential investor bridge |
|---|---|
| Property type | 1-8 unit non-owner-occupied residential |
| Loan size | $150,000 to $5M+ |
| Pricing | Rates from 7.99% |
| Closing speed | As little as 10 days |
| Payments | Interest-only |
| Valuation | No appraisal on some bridge programs |
| Exit | Sale or refinance into a DSCR loan |
Near UW-Madison and across much of the isthmus, leases turn over on or around August 15, and leasing for the next year often happens in the fall, winter and early spring. A property bought with vacancies in February or March has a good chance of being fully leased for the coming year. One bought in late summer may not.
Plan your bridge term with that cycle in mind. If you close in spring, you may be able to sign leases, collect a couple of months of rent and refinance by early fall. If you close later, build in more time and more interest.
This example is illustrative and not a quote. An investor buys a four-unit building near Regent Street for $820,000 in March. Two units have leases for the coming year and two do not. A 75% bridge loan of $615,000 closes in about two weeks. The investor spends $24,000 of their own cash on updates, and estimated interest-only payments total about $25,599 over five months.
By August all four units are leased at $1,750, for $7,000 a month. The building appraises at $870,000, and a 75% DSCR refinance of $652,500 pays off the bridge loan. Estimated principal and interest is about $4,562; with taxes of $1,400 and insurance of $230, the payment is about $6,192, for a DSCR of about 1.13x.
Madison's tax bills are high, and the city updates assessments frequently, so a building bought at a higher price than its old assessment may see its bill rise. Your DSCR refinance will be underwritten on the actual tax bill, so budget for the higher figure when you plan the exit.
The lottery and gaming credit only applies to an owner's primary residence. If the seller lived in one unit, expect the bill to change. Pull the current bill and assessment from the city before you make an offer, and use a realistic tax figure when you estimate the refinance.
Wisconsin has no mortgage recording tax, so financing a property twice costs less here than in some states. Expect title insurance, recording and lender fees on both the bridge loan and the refinance, and budget for interest during the bridge period.
The seller typically pays Wisconsin's $3 per $1,000 transfer fee, which matters if your exit is a sale.
Owners trading an older two-flat for a larger building, or moving from the suburbs to the isthmus, can use a bridge loan to close on the new property first and repay it with the sale proceeds. Price the property you are selling against recent sales, and leave extra time if the sale will happen in winter, when Madison listings tend to move more slowly. A sale that slips past the bridge maturity adds interest and can force a rushed decision.
The usual exit is a DSCR refinance that qualifies on rent with a 1.0x standard minimum ratio, cash-out up to 75% LTV and rate-and-term up to 80% LTV on some programs. Run that math before you buy, using Madison's full tax bill. If the property needs a full gut renovation, a fix and flip loan with a rehab budget is usually a better fit. Our bridge to DSCR guide covers timing and what the refinance lender reviews.
Send LendingStreet the address, price, current leases and your plan. We will tell you which bridge terms fit and how the refinance is likely to look. Statewide information is on our Wisconsin bridge loans page. If you are buying near campus, tell us when current leases end and how far along leasing is for the coming year; that timing shapes the bridge term we suggest.
Our residential investor bridge loans have rates from 7.99%. Pricing depends on leverage, the property and your experience.
In as little as 10 days when title, insurance and documents are ready. That speed can matter when a building comes up in spring leasing season.
Some bridge programs do not require an appraisal. Others do, depending on loan size and property. The DSCR refinance at the end will need a full appraisal.
Yes. That is a common bridge use. Buying in late winter or early spring gives you time to lease for August 15 before refinancing.
They may. Madison updates assessments frequently, and the refinance will use the actual tax bill. Budget on your purchase price.
No. Expect title, recording and lender fees on each loan. The transfer fee of $3 per $1,000 is usually paid by the seller.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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