Rhode Island's rental market runs on the triple-decker. Buy three or four in Providence, Pawtucket or Central Falls and you are past $1M, often with units that need work. A large bridge loan funds the package and the time to fix it.
In short: LendingStreet makes residential investor bridge loans from $1M to $5M+ on 1-8 unit Rhode Island property, with rates from 7.99%, interest-only payments and closings in as little as 10 days on a complete file. Typical collateral is triple-decker and small multifamily packages in the Providence area and high-value homes in Newport and South County. Larger balances usually need a full valuation, and exits are a sale or a DSCR or jumbo DSCR refinance.
Triple-deckers rarely last long on the Providence market, and sellers of several buildings often want one buyer and a fast close. A bridge loan buys the package, then funds the time to complete lead work and re-lease units.
Providence leads, with triple-deckers and two-families in the West End, Federal Hill, Olneyville, Elmwood and Mount Pleasant, and student demand near Brown, Providence College and Johnson and Wales. Pawtucket, Central Falls, East Providence and Woonsocket offer similar buildings at lower prices, and Cranston and Warwick add single-family rentals.
Newport, Middletown, Narragansett and Westerly are the high-value coastal markets, where one home can exceed $1M and summer rentals are a big part of the economy.
This example is illustrative and not a quote. An investor buys four triple-deckers in the West End and Elmwood for $2,000,000, 12 units in all. Three units are vacant and need renovation and lead certificates, and taxes are budgeted at the city's non-owner-occupied level.
Assume a bridge loan of $1,400,000 (70% of the price). Because bridge payments are interest-only, the estimated monthly payment is about $11,667, or about $105,000 across the 9 months the investor expects to hold the loan before refinancing.
When the bridge matures, the value is $2,120,000. Refinancing at 70% LTV gives a $1,484,000 DSCR loan. Estimated principal and interest is about $10,123; with taxes of $3,200, insurance of $1,000 and $0 of other costs, the monthly payment is about $14,323. Rent of $19,800 puts DSCR at about 1.38x.
Even at the investor tax level, 12 units at market rent clear 1.0x with room to spare. The $1,484,000 refinance repays the $1,400,000 bridge and returns about $84,000 toward the lead and renovation work.
| Item | Amount |
|---|---|
| Purchase price | $2,000,000 |
| Bridge loan (70% of price) | $1,400,000 |
| Estimated monthly interest-only payment | $11,667 |
| Interest carry over 9 months | $105,000 |
| Value at refinance | $2,120,000 |
| DSCR refinance at 70% LTV | $1,484,000 |
| Estimated principal and interest | $10,123 |
| Taxes, insurance and other monthly costs | $4,200 |
| Total monthly payment | $14,323 |
| Monthly rent | $19,800 |
| DSCR | 1.38x |
Short term, interest-only, rates from 7.99%, and closings in as little as 10 days: those basics hold at every size in our $150,000 to $5M+ bridge program. Above roughly $1M, two things get more attention in Rhode Island: the valuation, which is usually a full appraisal on larger balances, and the exit, which has to be specific.
Larger balances are reviewed case by case, so the more complete the file, the faster the answer.
Providence-area rents have risen with the region's housing shortage, and a renovated triple-decker usually clears a 1.0x DSCR on combined rent at a reasonable leverage, even with the non-owner tax rate. The DSCR refinance qualifies on the rent of all three units, with no W-2s or tax returns.
Coastal homes in Newport and South County are harder to support on long-term rent, so investors often plan a sale or a lower-leverage jumbo DSCR loan there.
Rhode Island's real estate conveyance tax is $2.30 per $500 of price, customarily paid by the seller, and an additional conveyance tax applies to the portion of a residential sale above $800,000. On a package, each deed is figured separately.
Property taxes are the bigger ongoing cost. Providence and several other Rhode Island cities tax non-owner-occupied residential property more heavily than owner-occupied homes, through a separate rate or by withholding a homestead exemption. Budget on the investor rate, not the seller's bill if the seller lived there. Cities also revalue on a regular cycle, so check when the next one is due.
Rhode Island's lead hazard law requires most pre-1978 rentals to carry a lead hazard mitigation certificate, and nearly every triple-decker is old enough to need one. Short-term rentals must be registered with the state, and Newport and other coastal towns add their own rules.
Coastal flooding matters in Newport, Narragansett, Westerly and along Narragansett Bay. Get flood determinations and insurance quotes early.
Our investor loans are business-purpose loans on non-owner-occupied property, made to LLCs and other entities as well as individuals. A short summary of the deal, plus the items below, is enough to get a quote started. Use the form below or call (877) 298-1001.
On a multi-property Rhode Island request, a simple spreadsheet with each address, unit count, rent, taxes and insurance saves days. The team can then show how the bridge and the exit loan size at two or three leverage levels, so you can pick the structure before you sign.
The seller customarily pays it. An additional tax applies to the portion of a residential sale above $800,000. Confirm current amounts with your title company.
Providence taxes non-owner-occupied residential property more heavily than owner-occupied homes. Budget on the investor rate when you run the DSCR.
Most pre-1978 rentals need a lead hazard mitigation certificate. Nearly all triple-deckers fall in that group.
Generally yes. Larger balances usually need a full valuation of each property, even though some smaller bridge loans do not.
No. Our investor loans are business-purpose loans on non-owner-occupied property. They are made for investment properties held by investors or their entities.
Bridge rates start from 7.99%. Pricing on large balances is set case by case based on leverage, the properties and the exit.
Short-term rentals must be registered with the state, and Newport has its own rules. Confirm both before relying on nightly income.
Residential. Our residential programs cover 1-8 units, so triple-deckers and buildings up to eight units qualify.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.