Most Louisville rentals sell for well under $1 million, so a large bridge loan here usually finances more than one property: two or three Old Louisville apartment houses bought together, a package of houses from an exiting fund, or a group of buildings that need work before they can be refinanced. High-value single homes in the east end are the exception, not the rule.
In short: LendingStreet offers residential investor bridge loans in Louisville from $1M to $5M+ on 1-8 unit properties, with rates from 7.99%, interest-only terms and closings in as little as 10 days. Larger balances usually need a full valuation and are reviewed case by case. Most borrowers exit by refinancing into DSCR loans on each building, a blanket portfolio loan, or by selling.
Old Louisville produces many of the city's large residential files. Its Victorian homes often hold five to eight apartments, and when an owner sells two or three buildings together, the total easily passes $1 million. Germantown, the Highlands and Crescent Hill add packages of doubles and fourplexes.
Fund and portfolio sales are the other big source. National owners bought houses across south and southwest Louisville and Southern Indiana, and they often sell in groups. Single high-value homes in Indian Hills, Mockingbird Valley, Glenview, Anchorage or Prospect occasionally need bridge money for a fast purchase or renovation. Buildings of 9 or more units are commercial; see /commercial.html.
Old buildings and packages rarely arrive ready for long-term financing. Units may be vacant, below market or in need of updates, and sellers often want one fast closing. A bridge loan buys time to renovate, re-lease and document rents.
Expect a full appraisal on each property on these balances. Victorian conversions in Old Louisville can be hard to value because each building is different and comparable sales of 5-8 unit houses are limited. The appraiser will lean on rents and on sales of similar buildings in nearby neighborhoods, so provide rent rolls, leases and your renovation scope.
Lenders generally size the loan on the lower of purchase price and appraised value. A package discount helps your equity, but does not by itself raise the loan.
This example is illustrative and not a quote. An investor buys two 6-unit Victorian apartment houses and a fourplex in Old Louisville for $2,100,000. Several units are vacant and dated. The bridge loan is 70% of the price, $1,470,000, interest-only, with estimated monthly interest of about $12,250. The investor spends $180,000 of cash updating the vacant units.
After renovation and lease-up, the three buildings are worth about $2,450,000 together and rent for $16,800 a month. Because there are only three properties, the investor refinances each one into its own DSCR loan at 70% of its value, $1,715,000 in total, which retires the bridge loan. Each building's ratio is shown below; together the payments, including taxes and insurance, are about $15,258 a month, for a combined DSCR of about 1.10x.
| Building | Value after lease-up | DSCR loan at 70% | Monthly rent | DSCR |
|---|---|---|---|---|
| 6-unit building A | $950,000 | $665,000 | $6,300 | 1.07x |
| 6-unit building B | $920,000 | $644,000 | $6,150 | 1.08x |
| Fourplex | $580,000 | $406,000 | $4,350 | 1.19x |
A blanket portfolio loan needs five or more properties, so a deal like the example exits into separate DSCR loans, using the 5-8 unit program for the larger buildings; see /dscr-loans-5-8-units-louisville-ky.html. A package of houses, on the other hand, usually exits into a blanket loan. A high-value east-end home may exit into a jumbo DSCR loan, though rents there often support less leverage, so a sale is common; see /jumbo-dscr-loans-louisville-ky.html.
Know your exit before closing, and have a fallback. See /bridge-to-dscr-loan-guide.html.
Old Louisville and several other neighborhoods are local preservation districts, where exterior work such as windows, porches and roofing needs review. Interior unit updates usually move faster. Build review time into your bridge term if your plan includes exterior changes.
Leasing in Old Louisville follows the University of Louisville calendar for many units, so finishing renovations before late summer can shorten the time you carry bridge interest.
Kentucky charges a deed transfer tax on purchases, and title and recording fees apply to each property. After a sale, expect the Jefferson County Property Valuation Administrator's assessment to move toward your price; rentals do not get homestead exemptions.
Large older buildings cost more to insure, and some carriers are cautious about old wiring and heating systems. Builder's risk or vacancy coverage may be needed during renovation. Price insurance before you commit.
On $1M+ bridge loans, underwriters look at your track record with similar buildings, your renovation experience and your liquidity after closing. Experience with older multi-unit buildings is especially helpful in Old Louisville.
Send the property list, price, rent roll, renovation budget and exit plan through the form below, or call (877) 298-1001 to get a quote.
Not every large Louisville file is in Old Louisville. National rental owners bought houses across Okolona, Fern Creek, Shively, Valley Station and Southern Indiana, and when they sell, they often offer ten or more houses at once. Long-time local landlords do the same when they retire.
A package like that usually exits into a blanket portfolio loan once the houses are repaired and leased. If some houses are in Indiana, ask whether the exit program can combine both states; some can. Selling a few weaker houses to pay down the bridge loan is a common plan.
Before bidding, pull tax, flood and code records for every address. A few surprises across a dozen houses can change the repair budget and which properties you keep.
Yes. Our residential investor bridge loans run from $150,000 to $5M+, and larger balances are reviewed case by case.
Rates start from 7.99%, with pricing based on leverage, the properties, your experience and the exit.
Larger balances usually need a full valuation, often on each property.
A blanket loan generally needs five or more properties. With three, separate DSCR loans are the usual exit.
Buildings with 1 to 8 units are residential for our programs. Nine or more units is commercial.
As little as 10 days on some files. Multiple properties and older buildings can take longer because of appraisals and title work.
Yes. Bridge loans are short-term and interest-only.
Yes. A residential bridge loan can include properties on both sides of the river, and some blanket programs allow both states at refinance.
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