From fix-and-flip bridge loans to permanent DSCR debt — West Palm Beach, FL and Sussex, NJ
Reviewed by Dominick Prevete, Founder & CEO, National Loan Provider31 years in real estate finance
Between June 2025 and March 2026, Dominick Prevete of National Loan Provider moved six properties for one investor into 30-year fixed DSCR loans, $3,691,700 in total. The properties were five West Palm Beach, Florida short-term rentals and a Sussex, New Jersey 4-unit. He had placed fix-and-flip bridge loans on all six in earlier years.
| Funded | Property | Purpose | Program & term | Loan | LTV | DSCR | Rate at closing | Prepayment |
|---|---|---|---|---|---|---|---|---|
| June 2025 | West Palm Beach, FL · Single-family | Cash-out refinance | DSCR · 30-year fixed | $665,000 | 70% | 1.11 | 7.250% | 5-year step-down |
| August 2025 | West Palm Beach, FL · Single-family | Cash-out refinance | DSCR · 30-year fixed | $840,000 | 70% | 1.12 | 7.625% | 5-year step-down |
| September 2025 | West Palm Beach, FL · Single-family | Cash-out refinance | DSCR · 30-year fixed | $672,000 | 70% | 1.68 | 7.500% | 5-year step-down |
| December 2025 | Sussex, NJ · 4-unit | Rate-and-term refinance | DSCR · 30-year fixed | $450,000 | 75% | 1.68 | 7.500% | 5-year step-down |
| March 2026 | West Palm Beach, FL · Single-family | Cash-out refinance | DSCR · 30-year fixed | $420,000 | 70% | 0.87 | 7.625% | 3-year declining |
| March 2026 | West Palm Beach, FL · Single-family | Cash-out refinance | DSCR · 30-year fixed | $644,700 | 70% | 1.23 | 6.875% | 5-year step-down |
How do you refinance a fix-and-flip bridge loan into a DSCR loan?
In earlier years, Dominick Prevete placed fix-and-flip bridge loans for this investor on each of the six properties. Bridge financing does one job: short-term money to buy and renovate. Once the work was done, the five West Palm Beach homes became short-term rentals and the Sussex 4-unit became a long-term rental. Short-term debt no longer fit any of them. The investor needed permanent financing on each property, sized to what the finished rental was worth rather than what he paid before the renovation.
How were the six refinances structured?
National Loan Provider placed each property's refinance separately as a 30-year fixed DSCR loan, qualified on that property's own rent. The five West Palm Beach homes were cash-out refinances at 70% LTV. The Sussex 4-unit was a rate-and-term refinance at 75% LTV. Escrows were in place on all six. Coverage ran from 0.87 to 1.68, and rates at closing ran from 6.875% to 7.625%. The four West Palm Beach homes already operating as short-term rentals qualified on AirDNA projections of their short-term rental income.
Can a short-term rental with no rental history get a DSCR loan?
Yes. One West Palm Beach refinance, in March 2026, closed before that home was operating as a short-term rental. With no short-term rental income yet, it qualified on its long-term rental value instead, which put it at 0.87 coverage. It still closed, at 70% LTV like the other West Palm Beach homes.
What was the result?
Six refinances over ten months, June 2025 through March 2026, replaced bridge loans with $3,691,700 of permanent debt across two states.
What if your short-term rental isn't operating yet?
No rental history doesn't mean no permanent loan. A property can qualify on its long-term rental value even if the plan is to run it as a short-term rental, and a file below 1.0 coverage can still close. The short-term rental calculator shows how the numbers work once it is operating.
Related: Fix and flip loansShort-term rental DSCRClosed transactions
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