Building in Bend means planning for things that do not show up in a Midwest budget: basalt rock a few feet below the surface, a short dry season for foundations, sizable system development charges, and a city that now allows more homes per lot than it did a few years ago.
In short: LendingStreet funds ground-up construction loans for 1-8 unit investor projects in Bend, Redmond and across Deschutes County, including spec homes, build-to-rent houses, infill duplexes, triplexes and fourplexes, and small 5-8 unit buildings. Loans are sized on loan-to-cost with terms set per project, and money is released through a draw schedule after inspections. Approved plans, permits, a detailed budget and builder experience matter.
Bend's growth since the urban growth boundary expansion has pushed new subdivisions to the southeast and northeast edges of the city, while infill lots in central and west side neighborhoods are being redeveloped with duplexes, townhomes and homes with ADUs. Redmond has more large-lot subdivisions and somewhat lower land costs.
Oregon's middle housing law requires larger cities, including Bend, to allow duplexes on most residential lots and a wider range of middle housing such as triplexes, fourplexes, townhouses and cottage clusters. That opens infill options on lots that once held a single house. Check the current Bend Development Code for lot size, setbacks, parking and design standards.
| Project type | Where it is common | Main thing to plan for |
|---|---|---|
| Spec single-family home | Southeast and northeast Bend, Redmond | Resale comps; finish level buyers expect |
| Infill duplex or townhomes | Central Bend, older east side lots | Middle housing standards, utilities, SDCs |
| Home plus ADU (build-to-rent) | West side and central lots | Two rents; ADU design rules |
| Fourplex or cottage cluster | Larger infill lots | Site plan review, parking, fire access |
| 5-8 unit building | Zones allowing small multifamily | Commercial-grade code items; longer review |
Much of Bend sits on volcanic rock, and excavation for foundations, utility trenches and crawl spaces can require hammering or blasting. Get a geotechnical read or an experienced excavator's estimate before you finalize the budget, and keep a contingency for rock. It is one of the most common budget overruns locally.
Winter snow and freezing temperatures slow foundation and concrete work. Many builders aim to have a project dried in before the first heavy snow. A start in late fall can add months to the schedule and interest to your carry.
The City of Bend charges system development charges for transportation, water, sewer and parks on new homes and units, and these can be a large part of soft costs on an infill project. Redmond and Deschutes County have their own fee schedules. Some fees are lower for smaller units or ADUs; check the current schedule for your specific plan.
Include SDCs, plan review, building permits, utility connections and any required frontage improvements in your budget. Lenders look closely at whether soft costs are realistic.
This example is illustrative and not a quote. A builder buys an infill lot for $265,000 and plans a side-by-side duplex. Hard costs are $735,000, soft costs including plans, engineering, permits and SDCs are $115,000, and the contingency is $55,000. Total project cost is $1,170,000.
At 80% loan-to-cost, the construction loan is $936,000 and the builder's equity, including the land, is $234,000. Hard cost money is released in draws after each inspection.
The finished duplex is projected to sell for about $1,395,000. After roughly $83,700 in selling costs and an estimated $49,550 in interest over an 11-month build and sale (draws mean the average balance is well below the full loan), the projected profit is about $91,750. Held as a rental instead, each unit leases for about $2,850, and with $875 a month in taxes and insurance, the largest DSCR loan that reaches 1.0x is roughly $716,000. Holding new construction as a rental in Bend usually means leaving substantial equity in the deal, so decide your exit before you break ground.
| Stage | Share of hard costs | Approximate release |
|---|---|---|
| Excavation, rock removal, foundation | 15% | $110,250 |
| Framing and roof | 25% | $183,750 |
| Windows, siding, dry-in | 15% | $110,250 |
| Plumbing, electrical, mechanical | 15% | $110,250 |
| Insulation, drywall, interior finishes | 20% | $147,000 |
| Final, landscaping, certificate of occupancy | 10% | $73,500 |
Construction loans are only for projects that are ready. Projects without plans or permits, or a borrower with no build track record and no experienced general contractor, usually do not qualify.
Draw requests follow your schedule. An inspector confirms the work is complete, and funds are released for that stage. Keep invoices and lien waivers organized; slow paperwork is a common reason a draw takes longer than it should.
Use our construction draw schedule calculator to map your budget to stages before you apply. When you are ready, send the lot address, plans, budget and schedule, and we will review the project and give you sizing and terms. Call (877) 298-1001 or use the form below.
Spec homes are usually sold on completion. Duplexes and townhomes can be sold as a unit, sold separately if the lots are divided, or held as rentals. Build-to-rent projects refinance into a DSCR loan once leased.
New homes are added to the Deschutes County tax roll at a value set for new construction, so use a realistic tax figure for the refinance rather than the bill on the vacant lot.
Builder's risk insurance is required during construction. In Central Oregon, insurers and buyers pay attention to wildfire, and building with fire-resistant siding, roofing and vents can help the finished home sell or insure more easily. Ask your insurance agent early.
Lots on the west edge of town, in Tumalo and near Sisters sit closer to forest and grassland, and some subdivisions there have their own design rules for materials and landscaping. Build those requirements into the plans and the budget from the start rather than changing them mid-project.
Inside Bend, lots are expensive and scarce, but the resale and rental values are higher and middle housing rules allow more units. Redmond lots cost less and the permitting process is separate, though finished values are also lower. Lots in unincorporated Deschutes County may rely on wells and septic, which adds site work and can limit how many units are allowed.
Whichever you choose, the budget has to work against local finished values. A project that pencils on a west side Bend lot may not work on a Redmond lot with the same plan, and the reverse is also true.
Yes. We fund 1-8 unit investor projects in Bend, Redmond and Deschutes County, sized on loan-to-cost with terms set per project.
Oregon's middle housing law requires cities like Bend to allow duplexes on most residential lots. Check the Bend Development Code for your lot's standards.
Funds are released in stages after inspections confirm work is complete, following the draw schedule set at closing.
Yes. Rock excavation is common in Bend and is a frequent source of overruns. Keep a contingency.
Projects usually need either a build track record or an experienced general contractor, plus approved plans and permits.
Yes. Leased projects can refinance into a DSCR loan, though Bend rent levels often mean a lower loan amount than the construction loan.
Those are commercial projects. See our multifamily lending for 9+ units.
System development charges are part of soft costs and belong in the project budget. Lenders review whether they are realistic for the city and unit type.
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