In San Diego, a $1 million bridge loan can finance a single beach-area house, and $3 million buys a small apartment building in North Park. Large balances are routine here, and what separates good deals from bad ones is whether the rents at the end can carry the refinance.
In short: LendingStreet makes residential investor bridge loans from $1M to $5M+ in San Diego County on 1 to 8 unit properties, including coastal homes, 2-4 unit buildings and 5-8 unit properties. Bridge rates start from 7.99%, loans are short-term and interest-only, and closings can happen in as little as 10 days. Larger balances usually need a full valuation, and the exit is a sale or a refinance into a DSCR or jumbo DSCR loan.
High-value single homes are common bridge collateral here. La Jolla, Pacific Beach, Mission Beach, Ocean Beach and Coronado homes regularly trade above $1M, and investors buy them to renovate and resell or to hold as rentals. North County coastal homes in Carlsbad, Encinitas and Del Mar trade higher still.
Small apartment buildings with five to eight units in North Park, Hillcrest, Normal Heights and the beach areas are the other major use. These often come with long-term tenants at below-market rents, deferred maintenance or unpermitted units, which makes them hard to finance with long-term debt at purchase.
Most requests fit one of these patterns, and each needs a defined exit.
This example is illustrative and not a quote. An investor buys a six-unit North Park building for $2,850,000 and budgets $210,000 to renovate units as tenants move out. The bridge loan is sized at 65% of total cost, or $1,989,000. Estimated interest-only payments are about $16,575 a month.
Over the hold, renovated units lease at about $3,100, bringing rent to $18,600 a month, and the building is expected to appraise at $3,350,000. A DSCR refinance that repays the bridge would be about $1,989,000, about 59% of the new value. With Prop 13 taxes of about $2,731 and insurance of $650 a month, the new payment is about $16,949, a DSCR of about 1.10x.
The lower bridge leverage is intentional. In San Diego, a bridge sized at 75% or 80% of cost often leaves a refinance that the rents cannot carry. Sizing the bridge to the refinance you can actually get keeps the exit realistic.
| Item | Amount |
|---|---|
| Purchase price, 6 units | $2,850,000 |
| Renovation budget | $210,000 |
| Bridge loan at 65% of cost | $1,989,000 |
| Estimated monthly interest-only payment | $16,575 |
| Value after work | $3,350,000 |
| DSCR refinance amount | $1,989,000 |
| Monthly rent after work | $18,600 |
| Refinance payment with taxes and insurance | $16,949 |
| DSCR after refinance | About 1.10x |
AB 1482 caps rent increases on most buildings older than 15 years, and the City of San Diego's tenant protection ordinance adds just-cause and relocation requirements. You cannot simply empty a building to renovate it. Most value-add plans renovate units as they turn over naturally, which takes time.
Build the bridge term around that pace. A plan that needs every unit renovated in six months is unlikely to work under San Diego's rules.
In the example above, the investor renovates units only as tenants leave and keeps the rest of the building rented throughout. That keeps rent coming in to help cover interest during the hold, and it avoids relocation costs and disputes that come with no-fault terminations.
Larger balances usually need a full valuation. Coastal homes and small buildings with unpermitted units get careful review, so have permit histories and rent rolls ready. Appraisers will look closely at legal unit counts.
Bridge loans can close in as little as 10 days with a complete file. Trust sales, estate sales and partnership buyouts are common in San Diego, and those sellers value certainty of closing.
Maturing loans are another frequent trigger. When a short-term loan on a high-value rental comes due before the owner is ready to refinance or sell, a bridge loan can take it out and buy time to finish leasing, legalize units or wait for the right sale window.
Small buildings usually refinance into DSCR loans once rents are stable, and larger balances move into jumbo DSCR loans, where maximum LTV can be lower and the review more detailed. In San Diego, that typically means a lower-leverage refinance.
For renovate-and-resell projects on coastal homes, the exit is the sale. Price it on recent closed sales, not list prices, and plan for longer marketing in slower months.
Test the exit before you buy. If the refinance only works at a value above recent sales of similar buildings, or with every unit at the top of the market, plan for more equity or a longer hold. The example above clears 1.0x on realistic renovated rents, which is what makes the bridge sensible.
Prop 13 resets taxes to your purchase price, so taxes during the hold reflect what you paid. San Diego County charges a documentary transfer tax on sales, and insurance in California's tight market can be expensive, especially near canyons and open space.
Coastal properties may also need permits from the city and, in some cases, coastal approvals for exterior work, which can lengthen timelines. Budget interest, taxes and insurance for the full hold, plus a cushion.
If you are bidding on a trust or estate sale, ask for a quote before you submit your offer, so the seller sees a buyer with financing that fits their timeline.
Send the property details, purchase price, renovation budget, current rents and planned exit. The team will size the bridge and show how the refinance or sale repays it. Use the form below or call (877) 298-1001.
Our residential investor bridge program runs from $150,000 to $5M+, and $1M+ loans are reviewed case by case.
Bridge rates start from 7.99%. Pricing depends on leverage, property, experience and exit.
Larger balances usually need a full valuation of the property.
Yes, but tenant protections limit how fast units can turn over. Plan renovations around natural turnover.
Because the refinance has to clear the minimum DSCR on real rents. High prices relative to rents mean the long-term loan is often smaller.
Yes, as a non-owner-occupied investment property. The exit is the sale.
In as little as 10 days with a complete file.
This program covers 1 to 8 units. Larger buildings are covered on our multifamily page.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
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