In much of California, $1M is the starting price for a duplex, not a package. Large bridge loans here fund fourplexes and 5-8 unit buildings in Los Angeles and the Bay Area, ADU additions, and fast closings in a state where sellers often want certainty.
In short: LendingStreet offers California 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. California investors use them to buy and reposition small multifamily buildings, add units and close quickly, then refinance into a jumbo DSCR loan, often at lower leverage because of high prices relative to rent.
In Los Angeles County, duplexes through fourplexes and 5-8 unit buildings in areas like Mid-City, Highland Park, Koreatown, Long Beach and the San Fernando Valley regularly trade between $1.2M and $3M. In the Bay Area, Oakland, San Jose and the East Bay suburbs have similar small multifamily stock, and San Francisco prices run higher still.
San Diego investors buy in North Park, City Heights and Oceanside, while Sacramento and the Inland Empire (Riverside, San Bernardino, Ontario) offer lower prices, where a $1M+ bridge usually covers a package of homes or a larger building.
| Region | Typical $1M+ bridge collateral | Key review item |
|---|---|---|
| Los Angeles County | Fourplexes and 5-8 unit buildings | Local rent ordinance coverage |
| Bay Area | Small multifamily and high-value single-family | Rent rules and seismic retrofit status |
| San Diego County | Duplexes to 8 units, coastal homes | Coastal permitting and insurance |
| Sacramento, Inland Empire | Packages of homes, larger buildings | Rent roll and condition across properties |
Bridge financing fits California deals that are not ready for long-term debt or that need speed:
Our residential investor bridge program runs from $150,000 to $5M+, with rates from 7.99%. Files from $1M up are reviewed case by case: the property, your experience with similar deals, liquidity after closing and the exit all carry more weight as the balance grows.
Larger balances usually need a full valuation, so plan for an appraisal or similar report in the timeline. With the valuation ordered early and title moving, closing in as little as 10 days is realistic; terms are short and interest-only.
A purchase resets the assessed value to the price you pay under Proposition 13, so the seller's low tax bill does not carry over. Expect a base rate of about 1% of the price plus local bonds and assessments such as Mello-Roos in some newer areas.
Counties charge a documentary transfer tax, and several cities add their own. Los Angeles adds a large extra tax on higher-priced sales, and San Francisco and some East Bay cities have steep tiered rates. Insurance has also become harder: some carriers have stopped writing new policies in wildfire areas, and some owners end up on the state FAIR Plan with a supplemental policy. Get a quote before you remove contingencies.
This example is illustrative and not a quote. An investor buys a Long Beach fourplex for $1,650,000. One unit is vacant and dated; the other three are leased below market, and the building is covered by the statewide rent cap.
The vacant unit is renovated and leased at market, and the other rents rise only within the allowed cap. The refinance at 60% LTV comes to $1,032,000, so the investor brings about $205,500 to retire the $1,237,500 bridge balance.
At 60% LTV the investor brings cash to retire the bridge, which is common in California because prices are high relative to rent. A higher LTV would push the ratio under 1.0x.
| Line item | Amount |
|---|---|
| Bridge loan | $1,237,500 |
| Estimated monthly interest-only payment | $10,828 |
| Hold period | 7 months |
| Value at refinance | $1,720,000 |
| DSCR loan at 60% LTV | $1,032,000 |
| Estimated principal and interest | $7,128 |
| Taxes | $1,750 |
| Insurance | $420 |
| Total monthly payment | $9,298 |
| Monthly rent | $10,400 |
| DSCR | 1.12x |
The statewide rent cap and just-cause rules under AB 1482 cover many rentals older than 15 years, and cities such as Los Angeles, San Francisco, Oakland and Berkeley have stricter local ordinances. These rules limit how quickly rents can rise after a purchase, which directly affects the refinance DSCR. Read the rent roll and confirm which rules apply before you count on higher rents.
Los Angeles and San Francisco generally limit short-term rentals to the host's primary residence, so non-owner-occupied STR plans there usually do not work. Investors who want vacation rental income tend to look at markets that permit it, such as parts of Palm Springs, Big Bear and Joshua Tree, subject to local permits and caps.
Los Angeles, San Francisco and several other California cities require seismic retrofits of older wood-frame buildings with soft or weak first stories, such as those with tuck-under parking. If a fourplex or 6-unit building is on a city retrofit list, check whether the work is done or still owed.
Unfinished retrofit work is a cost and a timeline item, and in some cities part of the cost can be passed through to tenants under local rules. A bridge can fund the purchase while the retrofit is completed, then a DSCR refinance replaces it once the building is in compliance.
Ask the seller for permits and sign-offs, and have your inspector look at the foundation, the first floor and any structural changes. These items also affect the full valuation and insurance cost.
A bridge buys time. The plan for that time should end in a sale or in a 30-year DSCR or jumbo DSCR loan sized on lease income, with LLC borrowers standard and no tax returns. Minimum DSCR on standard programs is 1.0x and minimum credit is 620.
Know your target refinance amount on day one. If the refinance will not cover the bridge payoff, plan the cash you will bring or the property you will sell.
Use the form below or call (877) 298-1001. These items let us move straight to terms:
Prices are high relative to rents, and larger loans often get lower leverage, so many California rentals only reach 1.0x DSCR at a lower LTV.
Yes. If AB 1482 or a local ordinance covers the building, rent increases are limited, and the refinance is sized on the rent you can actually collect.
A bridge can fund a purchase with planned improvements; for full ground-up building, a construction loan is usually the better fit.
Usually not for investors, because the city generally limits STRs to primary residences. Long-term leases are the normal exit there.
In most cases. A seven-figure balance usually needs an appraisal or similar report, so we order it as soon as terms are accepted.
As little as 10 days. The valuation and title search are what usually decide whether you hit that.
The program is listed at $5M+, so larger requests are possible and reviewed case by case.
Yes. That is the most common exit. A DSCR loan qualifies on rent, and balances of about $1.5M and up go into jumbo DSCR.
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