A lot of Rochester rentals change hands half empty, with a lapsed certificate of occupancy or a list of repairs. A bank will not lend on that, and a DSCR loan cannot yet. A bridge loan covers the gap.
In short: LendingStreet makes short-term, interest-only bridge loans on 1-8 unit investment property in Rochester and Monroe County, from $150,000 to $5M+, with rates from 7.99% and closings in as little as 10 days. Some bridge programs need no appraisal. Most Rochester investors use the bridge to buy, lease up and get the property certified, then refinance into a 30-year DSCR loan.
Bridge loans fit properties that are not ready for long-term financing yet.
Speed matters in Rochester because low-priced properties attract cash buyers. A bridge loan lets you compete on closing time while still using leverage, and then move to cheaper long-term debt once the property is stable.
Rental properties in the City of Rochester need a current certificate of occupancy, and the inspection includes lead hazards. When a property is bought with an expired certificate or open code violations, the new owner has to fix the issues and pass inspection before leasing.
That period can take weeks or months. Long-term lenders usually want leases in place, so a bridge loan is often the tool for this stretch. Ask the seller and the city for the property's code history before you commit.
Common items that hold up a city certificate include peeling exterior paint, missing smoke and carbon monoxide detectors, damaged porch railings, and window sills with lead dust. Most are fixable, but they take contractors, a reinspection and time, which is what the bridge term needs to cover.
This example is illustrative and not a quote. An investor buys a three-unit building for $310,000 with two units vacant. A bridge loan at 80% of the price is $248,000, with estimated interest-only payments of about $2,067 a month while the units are cleaned up and leased.
Six months later all three units are leased at $1,250, $1,150 and $1,100, and the building appraises at $360,000. A DSCR loan at 75% LTV of $270,000 pays off the bridge. Estimated principal and interest is about $1,842, plus $650 in taxes and $240 in insurance, for a payment of about $2,732 against $3,500 of rent, a DSCR of about 1.28x.
| Stage | Loan | Monthly payment | Rent |
|---|---|---|---|
| Bridge, 2 units vacant | $248,000 | $2,067 interest-only | Partial |
| DSCR refinance, fully leased | $270,000 | $2,732 with taxes and insurance | $3,500 |
Residential bridge loans run from $150,000 to $5M+ on 1-8 unit properties, with rates from 7.99%. They are short-term and interest-only, which keeps the payment low while the property is not fully earning. Leverage depends on the property, your experience and the plan.
New York closings usually involve attorneys on both sides. The state charges a transfer tax on the sale and a mortgage recording tax on the loan when it is recorded, and each loan you record adds to that cost. Ask your attorney for an estimate that covers both the bridge and the later refinance.
Property taxes are high across Monroe County, and city school taxes are on the city bill while suburban school taxes are billed separately. Budget your carry on the real bills.
Insurance on a partly vacant building can cost more, and some carriers require a vacancy policy until units are leased. Get the quote early so it does not delay your closing.
The City of Rochester and Monroe County hold tax foreclosure auctions, and estate sales and bank-owned homes come up throughout the year. These sales often require a quick closing and sell as-is, with little chance to inspect inside.
A bridge loan can fund that kind of purchase when the timeline is short, but read the auction terms carefully. Some auctions require a deposit on the day and the balance within a set number of days, and title issues can take time to clear. Have your financing and your attorney lined up before you bid.
Every bridge needs a way out. Most Rochester investors refinance into a DSCR loan once the units are leased, using the combined rent to qualify. Others sell after the repairs. Know which one you are aiming for, and what rent or sale price it needs, before you buy.
A simple test: take the rent you expect after lease-up, subtract taxes and insurance, and see whether it covers a DSCR payment at 75% of the value you expect. If it does with room to spare, the refinance exit is realistic.
Snow and cold slow exterior repairs from late fall into spring. If your plan includes a porch rebuild, roof or exterior paint to pass inspection, a winter purchase may need a longer bridge term.
Inside the house, cold weather is less of a problem. Interior painting, lead-safe window work and kitchen updates can continue through the winter, so a well-planned bridge can still move quickly while the exterior waits.
Send the address, price, unit mix, current rents and your plan through the form below, or call (877) 298-1001. Our investor loans are business-purpose loans on non-owner-occupied property. We will lay out the bridge and the refinance together.
Include the city's code history, photos of the vacant units and your repair budget. The more clearly we can see the path from today's condition to a leased, certified building, the faster we can answer.
In as little as 10 days with a complete file and clear title.
Rates start from 7.99%, and the final terms depend on leverage, the property and your experience.
Some bridge programs need no appraisal. Others use one, especially on higher leverage or harder properties.
Yes. That is one of the most common uses. The bridge carries the property while you lease it.
Yes. Once the property is leased and certified, a DSCR loan can pay off the bridge based on the rent.
Yes. We lend across Monroe County, including Irondequoit, Greece, Gates, Henrietta and Brighton.
No. These are business-purpose loans on non-owner-occupied investment property.
Sometimes. It depends on the auction terms, the timeline and whether clear title can be delivered. Talk to us before you bid.
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