In Washington, the size of the deal changes the tax on it. The state's graduated real estate excise tax climbs at higher prices, and a new statewide limit on rent increases affects how fast an older building can reach market rent.
In short: LendingStreet provides residential investor bridge loans from $1M to $5M+ on 1-8 unit Washington property, with rates from 7.99%, interest-only payments and closings in as little as 10 days on a complete file. Typical collateral is Tacoma and Seattle 5-8 unit buildings, Eastside homes and Spokane rental packages. Larger balances usually need a full valuation, and exits are a sale or a DSCR or jumbo DSCR refinance.
Puget Sound small multifamily often trades off-market, and sellers want a quick, certain close. A bridge loan buys the building, then gives time to update units and stabilize before refinancing.
Seattle's small multifamily is spread through Ballard, Fremont, Capitol Hill, Beacon Hill, the Rainier Valley and West Seattle, and prices there are high relative to rent. Tacoma (Hilltop, the Stadium District, South Tacoma) and Everett offer older plexes at lower prices, while Bellevue, Kirkland and Redmond have high-value homes.
Spokane is the main eastern Washington market, with rentals near Gonzaga and the medical district. Vancouver, the Tri-Cities and Bellingham each have steady demand, and Olympia adds state government renters. Outside Seattle and the Eastside, a $1M+ bridge usually covers a small multifamily building or a group of homes.
This example is illustrative and not a quote. An investor buys an eight-unit building in Hilltop for $1,900,000. Two units are vacant and need renovation, and the rest are below market, with increases limited by the statewide rent cap.
Assume a bridge loan of $1,330,000 (70% of the price). Because bridge payments are interest-only, the estimated monthly payment is about $11,083, or about $99,750 across the 9 months the investor expects to hold the loan before refinancing.
At refinance the properties appraise at $2,000,000. A DSCR loan at 70% LTV is $1,400,000, with estimated principal and interest of about $9,550 a month. Add $1,830 in taxes, $700 in insurance and $0 in other housing costs, and the total payment is about $12,080. Against $13,600 of monthly rent, DSCR is about 1.13x.
Using renovated units at market and occupied units at capped rents, the building clears 1.0x. The $1,400,000 refinance repays the $1,330,000 bridge with about $70,000 left over. A similar Seattle building would likely need a lower LTV.
| Item | Amount |
|---|---|
| Purchase price | $1,900,000 |
| Bridge loan (70% of price) | $1,330,000 |
| Estimated monthly interest-only payment | $11,083 |
| Interest carry over 9 months | $99,750 |
| Value at refinance | $2,000,000 |
| DSCR refinance at 70% LTV | $1,400,000 |
| Estimated principal and interest | $9,550 |
| Taxes, insurance and other monthly costs | $2,530 |
| Total monthly payment | $12,080 |
| Monthly rent | $13,600 |
| DSCR | 1.13x |
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 Washington: 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.
Washington adopted a statewide limit on annual rent increases in 2025, generally 7% plus inflation with a 10% ceiling, with an exemption for newer buildings. An older building bought with below-market rents may take years to reach market, so the DSCR exit has to work on rents the law allows.
Tacoma and Spokane plexes often clear 1.0x at a reasonable leverage. Seattle and Eastside properties usually need a lower LTV or jumbo DSCR financing, with leverage that varies by program.
Washington's real estate excise tax (REET) is graduated: the state rate rises in tiers, with higher rates on the portion of a price above roughly $1.5M and again above roughly $3M, and most cities add a local REET. The seller customarily pays it, but it shapes pricing on large deals. The tiers adjust periodically, so get a current figure from your escrow company.
Property taxes are moderate by national standards, though levy changes and voter-approved measures vary by county.
Seattle requires longer notice for rent increases and has relocation assistance rules for some large increases, and many cities have their own tenant protections. Seattle also limits short-term rental operators to their primary residence plus one more unit.
Older brick buildings in Seattle and Tacoma may need seismic work, and flood and landslide areas exist around Puget Sound. Ask for any seismic evaluation the seller has, and check the city's records for unpermitted units in converted houses.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the addresses, price, current rents, any rehab budget and the exit you have in mind, and the financing team will size the bridge against the exit before you commit. Call (877) 298-1001 or use the form below.
Large Washington files move fastest when title, insurance and the valuation are ordered as soon as terms are agreed. Starting those three items early is usually what makes a 10-day close possible on a bigger balance.
The state rate is graduated, with higher rates on the portion above roughly $1.5M, plus a local REET. Get a current estimate from your escrow company.
It applies to most rentals, with an exemption for newer buildings. Confirm the rules and exemptions before planning rent increases.
Seattle limits operators to their primary residence plus one more unit, so most investor exits are long-term leases.
Usually, yes. Some smaller bridge programs skip the appraisal, but larger balances generally require a full valuation of each property.
No. Our investor loans are business-purpose loans on non-owner-occupied property only. The properties must be held as investments.
Rates start from 7.99%. Larger balances are priced case by case, with leverage, property type and the strength of the exit all considered.
Prices are high relative to rent, so a lower LTV is often needed to reach 1.0x.
Yes. Spokane rental packages and plexes often exit into DSCR or blanket loans.
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