Small multi-family buildings in Midtown and older Reno rarely come to market in move-in condition. Many have a unit that has sat empty, leases far below market, or a long list of deferred repairs. A bridge loan lets you buy the building as it is, fix it and lease it, then refinance on the rents it actually earns.
In short: LendingStreet offers residential bridge loans on 1-8 unit investment properties in Reno, Sparks and Washoe County from $150,000 to $5M+, with rates from 7.99%. The loans are short-term and interest-only, can close in as little as 10 days, and some programs require no appraisal. Most investors exit by refinancing into a DSCR loan or selling.
The most common use is buying a duplex, triplex or fourplex in Midtown, Wells Avenue or near the university that cannot support a long-term loan on current rent. Others use bridge loans to close quickly on a house before selling another property, to buy from an out-of-state owner who wants a fast and simple close, or to take over a property with an unpermitted unit that needs to be legalized or removed before permanent financing.
In each case, the bridge loan is sized on the purchase and the plan, and the long-term DSCR loan comes later, sized on stabilized rent.
Speed is also part of a competitive offer. Small multi-family buildings in older Reno attract local investors, and a seller weighing several offers often favors the buyer who can close fast with fewer contingencies.
Bridge terms are consistent across the metro.
Pricing within the program depends on leverage, experience, property condition and how clear your exit looks. A building with signed leases waiting on a refinance prices differently from one with every unit vacant.
This example is illustrative and not a quote. An investor buys a triplex near Midtown for $735,000. Two units are vacant and need new flooring, paint and updated kitchens; the third is leased below market. A 75% bridge loan of $551,250 carries estimated interest-only payments of about $4,823 a month during the work.
Five months later all three units lease at about $1,750, or $5,250 a month, and the building appraises at $790,000. A 75% DSCR refinance of $592,500 pays off the bridge loan. Estimated principal and interest is about $4,042, with taxes of $330 and insurance of $240, for a payment of $4,612 and a DSCR of about 1.14x.
| Stage | Loan | Monthly payment | Notes |
|---|---|---|---|
| Bridge, months 1-5 | $551,250 | $4,823 interest-only | Two units under renovation |
| DSCR refinance | $592,500 | $4,612 with taxes and insurance | All three units leased |
| DSCR at refinance | - | - | 1.14x on $5,250 rent |
Older Reno lots often have a cottage behind the main house or a converted garage that has been rented for years without permits. A DSCR lender will usually count only legal units, so an illegal unit adds little to the refinance and can create insurance and safety problems. A bridge loan gives you time to legalize the unit through the city, if zoning and building code allow, or to convert it back. Talk with the City of Reno or Sparks before you buy.
Legalizing a unit can involve zoning review, building permits, utility separation and fire separation work, and the timeline depends on the city's workload. Price that time into your bridge term rather than hoping for a quick approval.
Nevada's property tax system, based on depreciated replacement cost with annual increase caps, often produces lower taxes on older Reno buildings than buyers from other states expect. That helps the DSCR at refinance. Still, confirm with the Washoe County Assessor how your purchase affects the bill, and include the real figure in your plan rather than an estimate.
Before you buy, check market rent for each unit, a current insurance quote that reflects roof age and wildfire or flood exposure, and the tax figure. Those numbers decide whether the refinance clears 1.0x. Leave a few extra months on the bridge term in case leasing takes longer or the appraisal comes in below your target. Our bridge-to-DSCR guide covers the timing and seasoning questions.
If the appraisal comes in below your target, you can bring cash to the refinance, wait for more rent history, or look at our sub-1.0 DSCR programs where they fit. Extra term keeps those options open.
Interest is only part of the cost of holding a Reno building during a renovation. Utilities on vacant units, insurance, taxes, landscaping and winter heating continue every month. Budget each month of the term in full and keep a reserve for surprises like a failed water heater or a roof leak found during work.
Winter matters in Reno more than many newcomers expect. Vacant units still need heat to protect pipes, and exterior work like roofing and stucco repair is easier from spring through fall.
If the plan is a heavy rehab with draws and a sale, a fix and flip loan is usually the better fit because it can fund up to 100% of rehab on some programs. If the property is close to rentable and you mainly need speed or time to lease, a bridge loan is simpler. Both are short-term and interest-only.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, price, current rents and your plan through the form below or call (877) 298-1001. Tell us your closing deadline so we can line up title and insurance. For statewide information, see our Nevada bridge loan page.
A complete package with the purchase contract, rent roll and scope of work gets the fastest answer.
In as little as 10 days with a complete file and clear title.
Bridge rates start from 7.99%. Pricing depends on leverage, experience and the property.
Some bridge programs do not require an appraisal. Others do, depending on size and leverage.
Yes, but plan to legalize or remove it. Only legal units usually count when you refinance into a DSCR loan.
1-8 unit residential investment properties. Buildings with nine or more units go to our commercial programs.
Most investors refinance into a 30-year DSCR loan once the units are leased, or sell.
We lend throughout Washoe County, including Sparks, and across Nevada. Tell us the address and we will confirm.
Yes. A bridge loan can close quickly on the new purchase, and you can pay it down or refinance after the other sale.
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