Large rental deals in Burlington often come from one source: a long-time local landlord selling several buildings at once. Those sales move on the seller's timeline, and a bridge loan can close before permanent financing would be ready.
In short: LendingStreet makes residential investor bridge loans in the Burlington area from $1M to $5M+ on 1 to 8 unit properties, with rates from 7.99%, interest-only payments and closings in as little as 10 days. Larger balances usually need a full valuation and are reviewed case by case. Exits are usually a sale or a refinance into a blanket, DSCR or jumbo DSCR loan.
Single 2-4 unit buildings in Burlington usually sell well under $1M, so a $1M to $5M+ bridge loan typically covers more than one property or a higher-value asset. Situations we see include:
Our residential investor bridge program runs from $150,000 to $5M+ on 1 to 8 unit properties. Rates start at 7.99% for strong files. Terms are short and interest-only, and closings can happen in as little as 10 days with a complete file.
On larger Burlington loans, expect a full valuation of each property, a review of your renovation plan and experience, and attention to the exit. Renovation funds are usually held back and released as work is inspected.
Leverage depends on the condition and occupancy of each building. A package of fully leased buildings with modest below-market rents is a simpler file than vacant buildings that need major work. Contractors in Chittenden County are often booked well ahead, so a realistic schedule matters as much as the budget.
This example is illustrative and not a quote. An investor buys four buildings with 14 units in all near UVM and the Old North End from a long-time owner for $2,900,000. Rents are below market, and the plan calls for $200,000 of updates as units turn over.
The bridge loan covers 75% of the price plus the renovation budget, a total of $2,375,000. Estimated monthly interest-only payments are about $19,792. As leases renew at market, the 14 units rent for about $1,850 on average, or $25,900 a month.
If the four buildings appraise at $3,400,000 after the work, a DSCR refinance at 70% of value would be $2,380,000, enough to retire the bridge. Estimated principal and interest is about $16,398; with non-homestead taxes and insurance of about $7,400 a month, the total payment is about $23,798 and DSCR is about 1.09x. Taxes are a large share of the payment, which is why the exit was sized at 70%.
| Stage | Amount |
|---|---|
| Purchase price, four buildings | $2,900,000 |
| Renovation budget | $200,000 |
| Bridge loan (75% of price plus renovation) | $2,375,000 |
| Estimated monthly interest-only payment | $19,792 |
| Rent after leases reset, 14 units | $25,900 |
| Value after work | $3,400,000 |
| DSCR refinance at 70% | $2,380,000 |
| DSCR after refinance | About 1.09x |
Many rentals near campus run on academic-year leases. Rent increases happen at renewal, so the timing of your purchase decides how fast income rises. A purchase in spring lets you re-lease units for August, while a purchase in the fall may mean waiting most of a year for leases to turn. Choose a bridge term that fits the lease calendar, with room to spare.
Burlington's rental market is tight, but tenants are protected by state and city rules on notice and habitability. Review every lease before you count on new rents.
Turnover also gives you a chance to do work. Many owners schedule kitchen, bath and heating updates for the weeks between a May move-out and an August move-in, which keeps vacancy short and lets renovation spending line up with rent increases.
In Vermont, the buyer generally pays the property transfer tax, and investment property does not get primary residence rates. On a multi-million dollar purchase, the transfer tax is a meaningful closing cost; ask your attorney for the figure.
Rentals pay non-homestead education taxes, which make up most of the bill. During the bridge term, you also carry insurance, utilities in vacant units and winter costs such as heat, plowing and roof snow removal.
| Cost | When | Note |
|---|---|---|
| Property transfer tax | At closing | Generally paid by the buyer |
| Non-homestead property tax | During the term | Use current bills |
| Winter costs | November to April | Heat, plowing, roof snow |
| Rental registration | Annually | City fee and inspections |
Lakefront and large homes in Shelburne, Charlotte and parts of South Burlington can sell for well over $1M. Comparable sales are fewer and lake frontage varies, so valuations take longer. If the exit is a jumbo DSCR loan, roughly $1.5M to $5M+, size it to realistic lease income, since luxury home rents rarely match their payment at high leverage. Max LTV on larger balances varies by program.
A package of five or more properties can go into one blanket DSCR loan with release provisions. Individual DSCR loans fit if you plan to sell some buildings later. A single high-value rental may go to a jumbo DSCR loan. Selling some properties and refinancing the rest is also common. Our bridge to DSCR guide covers timing and seasoning.
Check the exit math early. With Vermont's taxes and insurance costs, the refinance amount that the rent supports may be lower than the bridge balance if rents do not rise as planned. Keep cash available for a paydown, or plan the bridge at a lower amount from the start.
Send the addresses, price, unit counts, current leases and lease end dates, renovation plan and exit. Use the form below or call (877) 298-1001, and tell us when the seller needs to close.
Our residential investor bridge program goes from $150,000 to $5M+, with larger balances reviewed case by case.
Yes, as long as each property has 1 to 8 units.
Larger balances usually need a full valuation of each property.
Rates start from 7.99% for strong files. Large balances are priced case by case.
As little as 10 days with a complete file. Multi-property purchases can take longer.
In Vermont, the buyer generally pays the property transfer tax.
Yes, if it is an investment property and not a home you will live in.
Not under this program. Nine or more units is commercial.
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