Oregon is one of the few states with a statewide cap on rent increases, and that shapes every bridge-to-DSCR plan. A large bridge loan still works well here, as long as the exit is built on rents the law allows.
In short: LendingStreet makes residential investor bridge loans from $1M to $5M+ on 1-8 unit Oregon property, with rates from 7.99%, interest-only payments and closings in as little as 10 days on a complete file. Typical collateral is Portland 5-8 unit buildings, Willamette Valley rental packages and Bend-area homes. Larger balances usually need a full valuation, and exits are a sale or a DSCR or jumbo DSCR refinance.
Portland small multifamily trades less often than it did a few years ago, and motivated sellers want certainty. A bridge loan closes fast, then gives the buyer time to repair units and stabilize occupancy before the long-term loan.
The program itself is the same one we use for smaller Oregon deals: $150,000 to $5M+, rates from 7.99%, interest-only payments and short terms. What changes above $1M is the review. Larger balances are looked at case by case, and they usually need a full valuation rather than a quick desk review.
Speed is still the reason investors use it. When title, valuation and entity documents are ready, closings can happen in as little as 10 days.
Portland's inner east side (Buckman, Sunnyside, Richmond, Montavilla) and north Portland (St. Johns, Kenton) hold most of the city's older 5-8 unit buildings and plexes, while Beaverton, Hillsboro, Gresham and Vancouver across the river add suburban rentals. Infill duplexes and fourplexes have grown since the state's middle housing law allowed them in most residential zones.
Salem and Eugene serve state government and the University of Oregon, Medford and Grants Pass anchor southern Oregon, and Bend in Central Oregon has high-value homes where a single property can pass $1M.
Oregon's constitution bars new real estate transfer taxes, and Washington County's $1 per $1,000 tax is the main exception that remains. Elsewhere, closing costs are mostly title, escrow, recording and loan costs.
Property taxes follow Measure 50: the assessed value on which taxes are figured can generally grow only 3% a year, and unlike some states it does not reset to market when a property sells. That means the seller's tax bill is usually a fair guide, unless major improvements were added. Check the county record either way.
This example is illustrative and not a quote. An investor buys a 1920s eight-unit building in Richmond for $1,850,000. Two units are vacant and need renovation, and the occupied units are below market, with increases limited by the statewide cap.
Leverage here is assumed at 70% of the purchase price, a $1,295,000 bridge loan. With interest-only payments estimated at about $10,792 a month, the 10-month plan carries about $107,917 in interest.
The exit appraisal comes in at $1,950,000, and the DSCR loan is sized at 70% LTV, or $1,365,000. That carries estimated principal and interest of about $9,312 a month. Taxes ($1,400), insurance ($700) and other costs ($0) bring the payment to about $11,412, and $13,200 of rent works out to DSCR of about 1.16x.
The refinance rent uses the two renovated units at market and the six occupied units at capped rents, and the building still clears 1.0x. The $1,365,000 DSCR loan repays the $1,295,000 bridge with about $70,000 left over.
| Item | Amount |
|---|---|
| Purchase price | $1,850,000 |
| Bridge loan (70% of price) | $1,295,000 |
| Estimated monthly interest-only payment | $10,792 |
| Interest carry over 10 months | $107,917 |
| Value at refinance | $1,950,000 |
| DSCR refinance at 70% LTV | $1,365,000 |
| Estimated principal and interest | $9,312 |
| Taxes, insurance and other monthly costs | $2,100 |
| Total monthly payment | $11,412 |
| Monthly rent | $13,200 |
| DSCR | 1.16x |
Portland requires rental registration and, in many cases, relocation payments when a landlord ends a tenancy without cause or raises rent by 10% or more in a year. Statewide rules also limit no-cause terminations after the first year. Factor these into any plan that involves turning over tenants.
Bend requires short-term rental permits and limits their density in residential areas, so nightly-rental exits there depend on permit status. Older Portland brick buildings may also face seismic upgrade questions.
Oregon limits annual rent increases on most buildings more than 15 years old to 7% plus inflation, with a hard ceiling of 10%. An older Portland building bought with below-market leases cannot be pushed to market in one year, so the DSCR refinance has to work on rents the cap allows, or on rents from new tenancies where the law permits a reset.
Newer buildings are exempt from the cap for their first 15 years, which is one reason investors look at recent infill. High-value Bend homes may need jumbo DSCR financing, with leverage that varies by program.
Our investor loans are business-purpose loans on non-owner-occupied property. The fastest large-balance files show the exit math up front: what the properties rent for, what they will be worth, and how the bridge gets repaid. Get a quote with the form below or at (877) 298-1001.
Expect the team to test the exit first. If the rents and values support a DSCR or jumbo DSCR refinance, or a sale makes sense, the bridge can be sized around that plan, and you will know what cash the Oregon deal needs at closing and at refinance.
It applies to most buildings more than 15 years old, limiting annual increases to 7% plus inflation, capped at 10%. Newer buildings are exempt for their first 15 years.
Generally no. The constitution bars new transfer taxes, and Washington County's $1 per $1,000 tax is the main exception. Confirm with your title company.
Usually not. Under Measure 50, assessed value grows by a limited amount each year and generally does not reset on sale, though major improvements can change it.
Rates start from 7.99%. Larger balances are priced case by case, with leverage, property type and the strength of the exit all considered.
In as little as 10 days when title, valuation and entity documents are ready. Larger balances add review time, so start the valuation as soon as the contract is signed.
Generally yes. Larger balances usually need a full valuation of each property, even though some smaller bridge loans do not.
Yes, if the home has or can obtain a Bend STR permit. Density limits apply in residential areas, so confirm the permit status first.
Not in this residential program. Buildings with 9 or more units are handled as commercial loans.
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