$793K Purchase Bridge: Katy Short-Term Rental

The Borrower's Problem

The borrower was purchasing a vacant single-family home for $1.22 million, with plans to reposition it as a short-term rental. The property did not yet have the operating income history the borrower intended to use for a long-term refinance.

The borrower already owned and operated 5 other rental assets acquired since 2019. This purchase required financing that could bridge the period between acquisition and an established rental track record.

The Helvetica Solution

Helvetica structured a $793,000 first mortgage with a 12-month term and interest-only payments. The loan represented 65% of the $1.22 million purchase price. The transaction summary separately reported a $1.3 million appraisal, above the purchase price.

The loan included 1 option to extend for 6 months, for a possible total term of 18 months. A minimum of 3 months of interest applied. The collateral was the 5-bedroom, 4.5-bath home, including its pool and 3-car garage, on a 14,744 SF site.

The planned exit was to establish a history of short-term rental income and refinance into long-term debt. The bridge supported that operating plan; the brochure did not report a completed refinance or realized rental results.

Benefit to the Borrower

• $793,000 of financing toward a $1.22 million purchase
• A 12-month bridge to establish rental income before seeking permanent debt
• Interest-only payments during the transition to rental operations
• 1 six-month extension option if the operating plan required more time
• Acquisition financing on a home purchased below its reported $1.3 million appraisal

Deal Highlights

• $793,000 first-mortgage purchase bridge; 65% of the purchase price
• 5,687 SF single-family home on a 14,744 SF lot in Katy, TX
• 5 bedrooms, 4.5 bathrooms, a 3-car garage, and a pool
• $1.22 million purchase price; $1.3 million appraisal reported in the transaction summary
• 12-month interest-only term with 1 six-month extension option
• Minimum interest: 3 months
• Planned exit: establish rental income and refinance into long-term debt