Looking for Asset-Based / Bridge Lender – 2-Unit Deal (Pasadena, TX)
Chris McDanielPro Member
Investor · Houston, TX · Member since 2024 · 8 posts · 2 votesLooking for Asset-Based / Bridge Lender – 2-Unit Deal (Pasadena, TX)
13 Replies
- 5moLandon ReidPro MemberInvestor · South Jordan, UT · Member since 2026 · 62 posts · 38 votes
Smart BRRRR setup at $125K purchase with $185-200K ARV. The spread is there.
One thing I'd check before locking in your rehab strategy: what does the zoning actually allow on that parcel? Pasadena TX has some tricky overlay districts, and on a 2-unit you want to confirm you're not sitting on restrictions that limit your rehab scope or future conversion options.
Specifically — are there setback or lot coverage limits that cap what you can add? Any flood zone or environmental overlay? Is the duplex use conforming or nonconforming?
I ask because I've seen investors BRRRR into properties where the "stabilize" step gets complicated by zoning constraints they didn't check upfront. A 20-second buildability check on that parcel would tell you exactly what's permitted and what your constraints are — before you commit capital.
On the lending side, at $125K purchase price you should have no trouble finding asset-based lenders in the Houston market. Most will go 70-75% of ARV on a 2-unit with that kind of spread.
- 5moErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @Chris McDaniel:
Hello,
I'm currently under contract on a 2-unit property in Pasadena, TX and looking for asset-based or bridge financing options that lend based on value rather than strict DSCR.Here are the deal details:
Purchase Price: $125,000
Rehab Budget: $0–$40,000 (depending on strategy)
Current Rents: $1,500/month total
Market Rents: $1,800/month potential
Estimated ARV: $185,000–$200,000
Property Type: 2-unit (tenant occupied)Goal:
Looking to minimize cash to close and execute a BRRRR strategy — purchase, stabilize, then refinance into a long-term loan.Ideal loan structure:
- ARV-based lending (65–70%+ of value)
- Ability to finance a portion of rehab (if needed)
- Interest-only preferred
- 12–18 month termChallenges I’m running into:
- Smaller loan size ($100K–$140K range)
- DSCR lenders requiring higher down payments
- Conventional financing not ideal due to structure and tenant setupIf anyone has lender recommendations or is a direct lender who works on deals like this, I’d love to connect.
Appreciate any insight or referrals!
– Christopher McDaniel
Hey Chris,
Do you have any experience doing fix and flips in the last 3 years? If not, do you have a credit score above 740?
LuxePrivate Investments LLC 572 Reviews - Investor · Houston, TX · Member since 2024 · 8 posts · 2 votes5mo
Hi, no fix and flips I have done 1 BRRRR. Credit score is 720.
- 5moScott WolfPro MemberLender · Boca Raton, FL · Member since 2014 · 1k+ posts · 957 votes
Quote from @Chris McDaniel:
Hi, no fix and flips I have done 1 BRRRR. Credit score is 720.
We can assist. We'd still need at least 20% down on the front end, but on the next deal we'd only need 10-15%. We can also assist on the takeout DSCR.
- Investor · Houston, TX · Member since 2024 · 8 posts · 2 votes5mo
You’re spot on about zoning — that’s what I’m verifying now, especially how the second unit is recognized. Appreciate the insight.
- Lender · Grasonville, MD · Member since 2025 · 70 posts · 16 votes5mo
Hi Chris,
You wouldn’t be able to move forward with a rehab loan on a currently occupied property. If you’re going the rehab route, the tenants would need to be vacated prior to closing or before funds are released.
For fix-and-flip deals, the rehab costs are typically covered and payments are interest-only during the term. As lenders, we evaluate both LTC and LTV when structuring these loans.
For a $40K rehab, a 6–9 month term would likely make the most sense for your timeline.
- Member since 2026 · 129 posts · 21 votes5mo
Quote from @Andrew Lee:
Hi Chris,
You wouldn’t be able to move forward with a rehab loan on a currently occupied property. If you’re going the rehab route, the tenants would need to be vacated prior to closing or before funds are released.
For fix-and-flip deals, the rehab costs are typically covered and payments are interest-only during the term. As lenders, we evaluate both LTC and LTV when structuring these loans.
For a $40K rehab, a 6–9 month term would likely make the most sense for your timeline.
This is much closer to a bridge deal than a DSCR execution, especially at that price point.
We do look at small-balance deals like this, but I’ll be upfront — the main drivers here won’t be the rent, it’s going to be:
– how real that ARV is
– current condition vs. deferred maintenance
– and how clean your refinance exit is post-stabilization
On a deal like this in Pasadena, we’d typically stay conservative on leverage unless the value is clearly supported. Smaller loans also tend to get tighter structurally.
That said, if your numbers hold, there’s a path to structure this with minimal cash in, but it has to make sense on the back end.
If you want, share how you're arriving at the ARV and your refi plan , happy to give you a quick sanity check.
- 5moMatthew BernalBusiness MemberInvestor · Austin, TX · Member since 2021 · 497 posts · 126 votes
This is exactly the type of BRRRR deal I fund small multifamily, value-add, and leverage based on ARV rather than DSCR.
$125K purchase with upside to ~$185K–$200K and a light rehab component is very workable, even in that ~$100K–$140K loan range.
The issues you're running into with DSCR and loan size are common — most conventional lenders just aren't built for this structure. I can typically structure bridge financing here with rehab included and keep your cash to close lower by underwriting off the value instead of just in-place income.
If everything lines up on the numbers, this is something I can realistically get done.
How much rehab are you planning to take on, and what’s your target loan amount on the deal?
- 4moVijay FriedmanBusiness MemberMiami, FL · Member since 2026 · 766 posts · 122 votes
Quote from @Chris McDaniel:
Hello,
I'm currently under contract on a 2-unit property in Pasadena, TX and looking for asset-based or bridge financing options that lend based on value rather than strict DSCR.Here are the deal details:
Purchase Price: $125,000
Rehab Budget: $0–$40,000 (depending on strategy)
Current Rents: $1,500/month total
Market Rents: $1,800/month potential
Estimated ARV: $185,000–$200,000
Property Type: 2-unit (tenant occupied)Goal:
Looking to minimize cash to close and execute a BRRRR strategy — purchase, stabilize, then refinance into a long-term loan.Ideal loan structure:
- ARV-based lending (65–70%+ of value)
- Ability to finance a portion of rehab (if needed)
- Interest-only preferred
- 12–18 month termChallenges I’m running into:
- Smaller loan size ($100K–$140K range)
- DSCR lenders requiring higher down payments
- Conventional financing not ideal due to structure and tenant setupIf anyone has lender recommendations or is a direct lender who works on deals like this, I’d love to connect.
Appreciate any insight or referrals!
– Christopher McDaniel
The numbers are workable on paper, but the loan size and cash-to-close goal are probably the main hurdles. At $125k purchase, $0–$40k rehab, and $185k–$200k ARV, a bridge lender may consider it if the ARV and rent support are solid.
I’d ask lenders upfront:
- minimum loan amount
- max LTC and LTARV
- whether they fund 2-units
- whether tenant-occupied is acceptable
- rehab draw process
- interest-only options
- BRRRR refinance seasoning requirements
If the goal is to minimize cash to close, a higher-leverage bridge loan may fit better than DSCR upfront, then refinance into DSCR once stabilized.
- 4moMayo GilfurtPro MemberReal Estate Consultant · Connecticut Ct · Member since 2026 · 130 posts · 30 votes
Chris, this is actually a pretty solid breakdown of the scenario and I can see why the traditional DSCR route is becoming difficult, especially at the smaller loan size.
The ARV and BRRRR structure probably puts this more into a bridge/asset-based conversation versus pure long-term DSCR from day one.
I work on the capital side with bridge and investor financing scenarios like this fairly often. The smaller balance can narrow the lender pool a bit, but there are still some groups that may look at it depending on leverage, exit strategy, and rehab scope.
Feel free to DM me or shoot me an email if you want another set of eyes on the structure. Happy to take a look and point you in the right direction if I can.
- Lender · Houston, TX · Member since 2026 · 69 posts · 6 votes1mo
Hi @Chris McDaniel — not sure if this deal is still live given the thread's a few months old, but wanted to flag interest in case it (or a similar deal) is still on the table. I'm with ACP Real Estate Lending and we do asset-based/bridge financing based on ARV rather than strict DSCR, focused specifically on investors in the Houston, TX area — Pasadena would qualify. Happy to take a look at the numbers if you're still working on this or have something new in the pipeline.
- 1moVijay FriedmanBusiness MemberMiami, FL · Member since 2026 · 766 posts · 122 votes
Quote from @Chris McDaniel:
Hello,
I'm currently under contract on a 2-unit property in Pasadena, TX and looking for asset-based or bridge financing options that lend based on value rather than strict DSCR.Here are the deal details:
Purchase Price: $125,000
Rehab Budget: $0–$40,000 (depending on strategy)
Current Rents: $1,500/month total
Market Rents: $1,800/month potential
Estimated ARV: $185,000–$200,000
Property Type: 2-unit (tenant occupied)Goal:
Looking to minimize cash to close and execute a BRRRR strategy — purchase, stabilize, then refinance into a long-term loan.Ideal loan structure:
- ARV-based lending (65–70%+ of value)
- Ability to finance a portion of rehab (if needed)
- Interest-only preferred
- 12–18 month termChallenges I’m running into:
- Smaller loan size ($100K–$140K range)
- DSCR lenders requiring higher down payments
- Conventional financing not ideal due to structure and tenant setupIf anyone has lender recommendations or is a direct lender who works on deals like this, I’d love to connect.
Appreciate any insight or referrals!
– Christopher McDaniel
@Chris McDaniel
This looks more like a bridge/RTL scenario than trying to force it into DSCR on the front end. The smaller loan size will narrow the lender pool, but with the purchase price, rehab and ARV you gave, it's worth looking at. I'd also compare the leverage on both LTC and ARV since most lenders will have constraints on both.
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