A $1M+ bridge loan in Waco rarely buys a single house. Here, large balances usually mean a package of rental homes, a group of student buildings near Baylor, or a portfolio of short-term rentals changing hands at once.
In short: LendingStreet provides residential investor bridge loans in Waco from $1M to $5M+ on 1-8 unit properties, with rates from 7.99%, short interest-only terms and closings in as little as 10 days when the file is ready. Because Waco homes are moderately priced, large balances here usually cover packages of homes or small buildings rather than one property. Larger balances usually need a full valuation, and the exit is a sale, DSCR loans or a blanket portfolio loan.
With most Waco-area rentals priced well under $400,000, a $1M to $5M bridge loan typically finances eight to twenty homes, a mix of student fourplexes and 5-8 unit buildings near Baylor, or a portfolio of short-term rentals near the Silos. Higher-value single homes do exist in Woodway, along the Brazos and around Lake Waco, but they are a small share of large bridge activity.
Bridge financing helps when a seller wants one closing for the whole group, when properties need turnover work before they qualify for long-term loans, or when a maturing loan must be paid off quickly.
| Scenario | Typical size | Common exit |
|---|---|---|
| Package of 8-20 single-family rentals | $1M to $4M | Blanket portfolio loan or individual DSCR loans |
| Baylor-area student buildings | $1.5M to $5M+ | 5-8 unit and 2-4 unit DSCR loans |
| STR portfolio near the Silos | $1M to $3M | STR DSCR loans or sale |
| Payoff of a maturing loan | Matches the payoff | DSCR or blanket after stabilization |
Baylor's enrollment supports a deep market of off-campus rentals. Small buildings of up to eight units within walking distance of campus trade among investors, often in groups. Pre-leasing for the next academic year starts early, and buyers who close in winter or spring can lock in fall leases before the refinance.
Summer is the natural renovation window. A bridge loan that closes in May leaves time to update units before August move-in.
Parking, life-safety items and the condition of shared stairways and laundry areas matter on student buildings. Budget for them in the renovation plan, since the appraiser and insurer will both look at them.
This example is illustrative and not a quote. An investor buys a six-unit and an eight-unit building near Baylor plus three nearby houses for $2,250,000 from one seller. A bridge loan of $1,690,000, about 75% of the price, closes the deal. Estimated interest-only payments run about $14,788 a month through a summer renovation.
After pre-leasing, the 14 apartment units rent for about $950 each and the houses for about $1,800, for $18,700 a month. At an appraised $2,500,000, refinancing at 70% of value gives $1,750,000, enough to repay the bridge. Estimated principal and interest is about $11,643, taxes at the full Texas rate are $4,800 and insurance is $1,300, for a total of about $17,743 and a DSCR of about 1.05x.
| Item | Bridge period | DSCR exit |
|---|---|---|
| Loan amount | $1,690,000 | $1,750,000 |
| Payment type | Interest-only | 30-year amortizing |
| Estimated monthly payment | $14,788 | $11,643 |
| Taxes and insurance | Paid by owner | $6,100 |
| Monthly rent | Partial during renovation | $18,700 |
| DSCR | Not used | About 1.05x |
Property taxes in the example take about a quarter of the rent. Texas rates are high, investors get no homestead exemption, and McLennan County values can rise after a sale. Size the exit on the full combined rate and on values close to your purchase price, not on the seller's bills. A package bought from a long-time owner may have been assessed below market for years, and a sale often brings the next assessment closer to the price.
Values can be protested each spring, but the refinance will be underwritten on the current bill.
On $1M+ loans, expect full appraisals. Each property is valued separately, and the loan is sized on the group. Waco comparables for student buildings and 5-8 unit properties can be thin, so appraisers may use income data as well as sales. Order valuations as soon as the contract is signed.
Many programs size the loan on the lower of cost or value. If you are buying the package at a discount, plan cash to close on the contract price.
Hail and wind drive most insurance costs in Central Texas, and older student buildings may have aging roofs and electrical systems. Each property needs coverage bound before funding, and vacant units under renovation may need a vacant or builder's risk policy.
Start quotes right away. On a 14-unit package, getting every policy in place is often the longest part of a quick close.
Some investors place the whole package with one carrier from the start, which makes it easier to roll coverage into the long-term loans later. Ask for wind and hail deductibles in dollars as well as percentages so you know the real exposure.
Closings can happen in as little as 10 days when title is clean, valuations are in and insurance is bound. Interest-only carry on a $1.5M+ loan adds up, so plan the renovation and lease-up schedule with some slack. Texas has no state transfer tax on deeds, which keeps closing costs on a large package lower than in many states.
Investors with experience owning or renovating similar properties generally see stronger terms.
For five or more homes, a blanket portfolio loan can refinance them together on combined cash flow. Student buildings can move into individual 2-4 unit and 5-8 unit DSCR loans. If the plan is to sell, look at how long similar Waco properties take to sell and plan the bridge term accordingly. Student buildings tend to sell best in the spring, when buyers can see signed leases for the next school year.
Deals under $1M are covered by our standard Waco bridge loans. Heavier rehab projects may fit better as fix and flip loans, which can fund part of the renovation budget.
Send the property list, price, rents and exit plan. We will size the bridge and the exit together. Call (877) 298-1001 or use the form below. See also our Texas large bridge page and Waco jumbo DSCR options.
Yes. Our residential investor bridge program runs from $150,000 to $5M+, and larger balances are reviewed case by case.
Packages of homes, student buildings near Baylor or STR portfolios, since single homes are moderately priced.
Rates start from 7.99% and depend on leverage, property type and experience.
On larger balances, usually yes, with each property valued.
Yes. Buildings up to 8 units are residential investment properties.
By sale, individual DSCR loans or a blanket portfolio loan for five or more properties.
As little as 10 days with clean title, valuations and bound insurance.
They affect the exit most. Size the refinance on the full investor tax rate.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
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