Investors searching multifamily bridge loans, 5+ unit apartment financing, and investment residential commercial bridge need product that underwrites rent rolls and NOI per door — not single-family ARV math.
Jaken Finance Group finances multifamily 5+ and investment residential bridge nationwide — all 50 states. Rates: 8.99%–13.5% interest-only, terms 12–24 months.
See the full commercial property type matrix · multi-family calculator · residential bridge overview
Why 5+ units underwrite as commercial
| Factor | 1–4 units (residential) | 5+ units (commercial multifamily) |
|---|---|---|
| Income proof | Often DSCR / rent survey | Full rent roll + T-12 |
| Valuation | Sales comps + ARV | Income approach / cap rate |
| Permanent exit | DSCR, bank portfolio | Agency (Fannie/Freddie), CMBS, bank |
| Bridge focus | Flip or BRRRR | Lease-up, unit turns, reposition |
Small residential portfolios use DSCR loans. Once the asset is five doors or more, lenders treat it as commercial multifamily with agency-aware exits — including FHA multifamily paths on larger licensed files.
Purchase vs. value-add
| Scenario | Underwriting basis | Typical leverage | Draw structure |
|---|---|---|---|
| Stabilized purchase | In-place NOI, occupancy ≥90% | 70%–75% LTV | Single close |
| Light value-add | Unit turns + rent bumps | 65%–72% LTC | CapEx holdback |
| Heavy lease-up | Vacancy + CapEx stack | 65%–70% LTC | Milestone draws |
| Distressed / REO | Business plan + as-is value | 60%–65% LTC | Tight reserves |
CapEx draw mechanics match commercial rehab loans — holdbacks release on inspection, not on pro forma alone.
What lenders review on multifamily bridge
| Input | Why it matters | Red flag |
|---|---|---|
| Unit mix & rent roll | NOI per door vs market | Asking rents with no lease evidence |
| Trailing 12 NOI | Carry coverage | One peak month annualized |
| CapEx scope | Turn cost vs rent lift | GC bid missing contingency |
| Property tax / insurance | Expense load | Understated tax reassessment |
| Exit lender path | Agency / bank floor | Cap rate above permanent market |
Worked example — Columbus OH 24-unit lease-up
Class C garden apartments — deferred maintenance, 71% occupied:
| Line | Amount |
|---|---|
| Purchase | $1,920,000 |
| CapEx (12 unit turns, roof, HVAC) | $360,000 |
| Total project cost | $2,280,000 |
| Bridge at 70% LTC | $1,596,000 |
| Sponsor equity | $684,000 |
| Rate | 10.5% IO · 18-month term |
| Pre-rehab avg rent | $825/unit |
| Stabilized avg rent | $1,050/unit at 93% occ |
| Stabilized NOI | ~$198,000/yr |
| Exit | Agency or bank at 65% LTV on ~$2.85M value |
Lease-up succeeds when signed leases replace pro forma rents monthly — bridge lenders want renovation progress and rent rolls, not optimism.
Permanent exits for 5+ multifamily
| Exit | Best fit | Typical timing |
|---|---|---|
| Agency (Fannie / Freddie) | Stabilized 5+ with clean ops | After 90-day seasoning |
| CMBS | Larger pools / conduit | Stabilized T-12 |
| Community / regional bank | Smaller MSAs, relationship | Flexible |
| Bridge extension | CapEx overrun | Last resort — model carry |
If permanent debt cannot clear your stabilized cap rate, the bridge term sheet tightens at application — review commercial loans by property type for exit benchmarks by asset class.
Multifamily bridge terms (Jaken Finance Group)
| Parameter | Range |
|---|---|
| Rates | 8.99%–13.5% IO |
| LTV / LTC | 65%–75% |
| Term | 12–24 months |
| Close | 14–30 business days |
| Coverage | All 50 states |
Unit-turn CapEx — what belongs in the holdback
| Scope item | Typical band | Lender note |
|---|---|---|
| Cosmetic unit turn | $8K–$18K / unit | Flooring, paint, appliances |
| Full gut unit | $25K–$45K / unit | Kitchen, bath, electrical |
| Common area / roof | Project-level | Must be in LTC day one |
| Contingency | 10%–15% of CapEx | Older mechanicals |
Holdbacks release on inspection — same milestone logic as commercial rehab loans. Soft costs (permits, interest reserve) belong in the cost stack, not as a surprise draw.
Stabilization timeline — typical 18-month bridge
| Month | Milestone |
|---|---|
| 0 | Close bridge · 8.99%–13.5% IO |
| 1–3 | First unit turns · lease renewals |
| 4–9 | Mid-project occupancy ramp |
| 10–14 | 90-day stabilized T-12 build |
| 15–18 | Agency / bank refi application |
Plan the permanent application 90 days before maturity. Carry on a 24-unit file at 10.5% IO adds up fast if lease-up slips a quarter.
Who this product is for
- Sponsors acquiring 5–100+ unit garden or mid-rise assets
- Value-add operators with GC bids and rent comps in-hand
- Investors bridging to agency or bank takeout after lease-up
- Not a substitute for 1–4 unit DSCR on small residential
Underwriting mistakes sponsors make
- Importing single-family flip comps to set multifamily value
- Ignoring tax reassessment after acquisition
- Refi application before 90 days of stabilized occupancy
- CapEx budget without 10%–15% contingency on older HVAC/roof stock
- Treating section 8 / HAP income without contract review
- Modeling 100% occupancy at market rents on day-one refi
Related financing guides
- Mixed-use property bridge loans
- Office building bridge loans
- Assisted living facility financing
- Commercial property loans by asset class
Get approved · Commercial real estate financing · Submit scenario · Multi-family calculator · (833) 264-7776
Rates, terms and conditions offered only to qualified borrowers and are subject to change at any time without notice. All loans are subject to full underwriting for loan approvals. Jaken Finance Group only finances non-owner occupied investment properties.