Fix and Hold Loans

Fix and Hold Loans: Renovate, Rent, and Refinance

A fix and hold strategy means buying a property that needs work, renovating it, renting it out, and keeping it as a long-term investment. The financing usually comes in two steps: a short-term bridge loan for the purchase and renovation, then a long-term rental loan, often a DSCR loan, once the property is rented. Kala Lending LLC helps you line up both steps across multiple lenders.

How the Two Steps Work

Bridge loan: finances the purchase and, with many programs, the renovation through draws
Long-term refinance: once the work is done and the property is rented, a DSCR loan based on the rental income and the new value pays off the bridge loan

If the property’s value has risen after the renovation, the refinance can in some cases return part of the cash you invested.

Why Investors Use It

Plan your exit before you buy
Build equity by improving the property
Move into long-term financing qualified on rental income
Repeat the process to grow a rental portfolio

What Lenders Typically Look For

Scope of work and budget: what you plan to do and what it will cost
After-repair value: the expected value once the work is finished
Rental income: the expected rent for the refinance
Credit and reserves: reviewed for both loans
Experience: your track record with similar projects

Frequently Asked Questions

How long before I can refinance? Seasoning rules vary by lender. Some allow a refinance soon after the work is done and the property is rented, others require a minimum ownership period.

Can one loan cover both steps? Some lenders offer programs that combine them. Availability varies.

Does the property need a tenant before I refinance? Many DSCR lenders want a lease in place, while others can use market rent.

Run Your Fix and Hold Scenario

Contact Kala Lending or submit your deal.

Kala Lending LLC is a mortgage broker and not a direct lender. Loans are offered through third-party lenders. Loans are for business or investment purposes only and are not for personal, family, or household use. All loans are subject to underwriting approval. Rates, terms, leverage, and availability vary by lender, borrower, property, and state. This is not a commitment to lend or a rate quote.