Arizona has the full range of large-bridge deals in one state: $2M Scottsdale vacation rentals, Arcadia renovations, and packages of single-family rentals across the West Valley and East Valley.
In short: LendingStreet funds Arizona bridge loans from $1M to $5M+ on 1-8 unit investment properties, with rates from 7.99% and closings in as little as 10 days. Larger balances are reviewed case by case and usually need a full valuation. Arizona investors use them for high-value Scottsdale and Paradise Valley purchases, rental packages in metro Phoenix, and payoffs of maturing loans, then refinance into DSCR or jumbo DSCR.
In metro Phoenix, single-property balances above $1M are common in Scottsdale, Paradise Valley, Arcadia and parts of north Phoenix. Many of these homes are bought for short-term rental income or renovated and leased to executive tenants.
Packages of single-family rentals are concentrated in the West Valley (Buckeye, Goodyear, Surprise, Glendale) and the East Valley (Mesa, Gilbert, Chandler, Queen Creek). Tempe adds student rentals near Arizona State. In Tucson, investors buy groups of homes and small 5-8 unit buildings near the University of Arizona, and Flagstaff and Sedona draw high-value vacation rental purchases.
| Area | Typical $1M+ bridge collateral | Main underwriting question |
|---|---|---|
| Scottsdale, Paradise Valley | Luxury home used as STR or executive rental | Local STR permit and HOA rules |
| Arcadia, north Phoenix | Older home being renovated | Scope, budget and resale value |
| West Valley, East Valley | Package of single-family rentals | Rent roll and HOA leasing limits |
| Tucson, Tempe | Student or 5-8 unit buildings | Lease cycle around the school year |
| Sedona, Flagstaff | High-value vacation rental | Seasonality and local licensing |
Arizona investors often use bridge capital for speed and for buildings or homes that are not ready for a 30-year loan yet. Typical cases:
The program covers 1-8 unit investment property from $150,000 to $5M+, with rates from 7.99% and interest-only payments. We size large balances deal by deal rather than off a rate sheet, looking at value, cost, experience and the exit.
Plan on a full valuation for a large balance. That is the main item that sets the calendar; when it is ordered right away and the title work is clean, closings can happen in as little as 10 days.
Arizona taxes rental homes in a different property class from primary residences, and investors do not get the homeowner rebate. Increases in the taxable value are limited each year, so a long-held property may show a lower bill than a recent purchase would. Check the county assessor record and budget conservatively.
Arizona requires owners of residential rental property to register it with the county assessor. Short-term rentals also need a state transaction privilege tax license, and some cities, including Scottsdale, Phoenix and Sedona, now require their own STR permits or licenses. Arizona does not have a general real estate transfer tax, which keeps closing costs on a large balance simpler than in many states.
This example is illustrative and not a quote. An investor buys a furnished four-bedroom Scottsdale home with a pool for $1,850,000. It has no rental history in the buyer's name, so the investor uses a bridge first.
The investor gets the city STR license, lists the home and builds eight months of bookings, then refinances using average monthly rental income.
The refinance stays at 65% LTV because large balances often get lower leverage and short-term income is seasonal. Low Arizona taxes help the ratio; a weak summer season would hurt it.
Air conditioning, roofs and pool equipment are the big-ticket items on Arizona properties. Inspect them before closing, because a failed HVAC system in July is both a cost and a vacancy problem.
Many newer subdivisions have HOAs, and some limit leasing or require minimum lease terms. On a package purchase, read every HOA's rules before you count a home as a short-term rental.
Arizona uses deeds of trust, and foreclosures are usually handled through nonjudicial trustee sales. Winning bidders typically must pay in full within a very short window, usually by the next business day, which is faster than any lender can close a new loan.
Investors who buy at trustee sales usually pay cash first and then use a bridge soon after the purchase to recover funds for the next deal or to finance repairs. If that is your plan, ask how soon after the purchase a bridge can close and what title documents will be needed.
For negotiated purchases, such as a builder selling a block of homes or an investor exiting a portfolio, a bridge that can close in as little as 10 days often wins against buyers who need a 30-year loan. Order the valuation the day terms are accepted to keep that timeline.
There are two common exits: sell the property, or refinance into a long-term DSCR loan that qualifies on rent rather than personal income. For balances around $1.5M and up, that refinance is a jumbo DSCR loan, and leverage on the larger balance varies by program.
Seasoning before a cash-out refinance also varies by program, so ask about it up front if you plan to pull equity out after the bridge.
Close speed depends on what we get on the first day. For a $1M+ request, send:
On some programs, yes, using actual history or a projection. Your city permit, HOA rules and state tax license have to be in place.
Arizona does not have a general real estate transfer tax. Title, escrow and recording costs still apply.
Yes. Groups of 1-8 unit rentals can close together on a bridge and later move into a blanket or individual DSCR loans.
Arizona requires residential rental properties to be registered with the county assessor, and short-term rentals have added licensing.
Plan on it. Larger balances usually need a full valuation, and getting it scheduled the first week is what keeps a quick close possible.
Yes. Closings can happen in as little as 10 days if the file is complete and the valuation is ordered right away.
The program runs from $150,000 to $5M+, and larger balances are reviewed case by case.
A sale, or a refinance into a DSCR or jumbo DSCR loan that qualifies on rent instead of personal income.
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