Investors often buy Reno rentals with short-term money because the property needs work or a seller wants a fast close. Once the work is done and the units are leased, the interest-only payment and approaching maturity date become the problem. A rate-and-term DSCR refinance solves both.
In short: LendingStreet refinances 1-8 unit rentals in Reno, Sparks and Washoe County with DSCR rate-and-term loans that pay off hard money, bridge or existing mortgages, up to 80% LTV on some programs. The loan qualifies on rent with no W-2s or tax returns, 30-year terms are available, and the standard minimum DSCR is 1.0x.
A rate-and-term refinance pays off existing debt and closing costs without taking meaningful cash out. It fits after a renovation financed with hard money, after a bridge loan used to buy and lease a building, or when an adjustable, interest-only or balloon loan is coming due. Because no cash leaves the deal, seasoning rules are often easier than on a cash-out, and leverage goes up to 80% LTV on some programs.
If you bought with a plan to renovate, lease and refinance, this is the closing that decides your long-term cash flow. A complete file at the start, with leases, rent deposits and a payoff letter, is what keeps it on schedule.
This example is illustrative and not a quote. An investor bought and renovated a duplex in Sparks with a bridge loan that now has a balance of $430,000. Estimated interest-only payments are about $3,762 a month, and the loan matures in four months. The finished duplex appraises at $640,000 and the units rent for $1,875 and $1,825, or $3,700 combined.
A new DSCR loan of $438,500 pays off the bridge balance and about $8,500 of closing costs, for an LTV of about 69%. Estimated principal and interest on a 30-year term is about $2,991. With taxes of $270 and insurance of $170, the payment is $3,431 and the DSCR is about 1.08x.
The monthly difference is meaningful, but the bigger benefit is removing the maturity date. A short-term loan coming due during a slow leasing season or a soft appraisal market is a risk the long-term loan simply takes away.
| Item | Bridge loan today | DSCR refinance |
|---|---|---|
| Balance | $430,000 | $438,500 |
| Payment type | Interest-only, short term | 30-year amortizing |
| Principal and interest (or interest only) | $3,762 | $2,991 |
| Maturity | About four months | 30 years |
| Ratio at $3,700 rent | - | 1.08x |
Start the refinance 45 to 60 days before your short-term loan matures. Appraisals in Washoe County can take time to schedule during busy seasons, and you want units leased and tenants moved in before the appraiser visits. Gather the payoff letter, leases, proof of rent received, your insurance declaration and your LLC documents up front. If maturity is close, ask your current lender about a short extension as a backup.
A clean file also helps the underwriter confirm rent quickly. Bank statements showing deposits that match the leases are often the simplest proof of rent received.
Nevada property taxes on a recently purchased and renovated property may change as the assessor updates the record for improvements, so ask the Washoe County Assessor how your work affects taxable value. Insurance in Reno varies widely by location: foothill and wildfire-exposed properties cost more to insure than valley-floor homes, and some sites near the Truckee River need flood coverage. Use current quotes, because both items are part of the DSCR payment.
In Sparks and the North Valleys, comparable sales often include newer homes; in older Reno, they are renovated properties nearby. Give the appraiser your scope of work, permits and before-and-after photos. The appraiser will also estimate market rent for each unit, which feeds straight into the DSCR, so share signed leases and recent listings of similar units.
A soft appraisal does not have to sink the plan. Cash at closing can bring the loan back inside the program LTV, and a short extension on the bridge loan buys time to lease the last unit or find stronger renovated comparables in Sparks.
These are the payoffs we see most often in Washoe County.
Each of these starts with the same three numbers: value, rent and the long-term payment.
Newer single-family homes in Reno and Sparks often struggle to reach 1.0x at high leverage because rents have not kept pace with prices. If you are refinancing a house off a bridge or hard money loan, you may need to bring cash to closing to reduce the loan, or use one of our sub-1.0 DSCR programs, which accept a lower ratio on some files with stronger credit and reserves.
Duplexes and fourplexes rarely face this problem at Reno prices, which is one reason many investors who plan to refinance focus on small multi-family from the start.
A strong appraisal opens a second path: cash-out up to 75% LTV. If retiring the bridge debt is the only goal, a rate-and-term loan stays smaller and keeps more room above 1.0x. Pricing both from one report lets you see the trade-off in dollars.
Ask for both quotes at the same time so the appraisal can serve either path.
Our investor loans are business-purpose loans on non-owner-occupied property. Use the form below or call (877) 298-1001 with your payoff letter, maturity date, rent roll and the property address. Our Nevada rate-and-term page covers statewide questions.
Yes. Paying off bridge or hard money loans after a renovation is one of the most common uses of a DSCR rate-and-term refinance.
On some programs up to 80% LTV, which typically covers the existing payoff plus closing costs, provided the rent meets the DSCR minimum at the new payment.
Signed leases are the strongest support. Some programs can use market rent on vacant units.
Six to eight weeks is a sensible lead time. The appraisal is usually the slowest step.
Often not on a rate-and-term refinance, since closing costs can usually be financed, unless a low appraisal or a tight ratio means the loan must shrink.
Ownership time rules exist but are usually easier than for cash-out. They differ by program.
Yes. We lend on 1-8 unit rentals throughout Washoe County.
You can bring cash to lower the loan or look at our sub-1.0 DSCR programs.
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