Fix and Hold Loans for Rental Investors
A fix and hold loan from JDM Capital funds the purchase and the rehab of a property you intend to keep and rent, at up to 100% of cost, with no appraisal required and closing in as little as 7 days. You stabilize the property, then refinance into long term financing with a permanent lender. We do not offer DSCR loans, so we are the first half of that plan and someone else is the second half. We say so up front because it changes who you should be talking to and when.
What are the terms of a JDM Capital fix and hold loan?
Up to 100% of cost, no appraisal, closing in as little as 7 days and draws in as little as 24 hours. Those four numbers hold on every deal we write. The full terms are in one table below. Where a figure depends on the deal, you get the real number on a call rather than a posted range you cannot rely on.
| Term | What it is |
|---|---|
| What the loan covers | Purchase and rehab of a property you intend to keep and rent. |
| Maximum loan to cost | Up to 100% of cost. |
| Maximum loan to ARV | Set on your deal, against the comps we underwrite to. Send the address and you will have a number the same day. |
| Loan amount | Sized to the project. Tell us what you are buying and we will tell you what we can fund. |
| Term | Matched to the scope of work and your exit. We agree it before you sign, so the deadline is one you helped set. |
| Extensions | Available, and we settle the terms of one before you close. Nobody should be negotiating an extension the week it falls due. |
| Minimum credit score | Tell us where you stand and you will get a straight answer on the call. |
| Experience required | Tell us what you have done and we will tell you where that puts you. |
| Exit | Refinance into long term financing once the property is stabilized, or sell. We do not offer DSCR loans, so the permanent loan comes from another lender. |
| Where we lend | Philadelphia, Bucks, Montgomery, Delaware and Chester counties in PA, and Camden, Gloucester and Burlington counties in NJ. All 339 municipalities, with no towns excluded. |
| Property types | Non owner occupied investment property only. These are business purpose loans. |
| Appraisal | Not required. |
| Time to close | As little as 7 days. |
| Rehab draws | Funded in as little as 24 hours. |
| Who underwrites | In house. The person who answers your call is the person who approves the loan and wires the money. |
| Rate and points | Quoted per deal. Call or text 267-228-3289 and we will price it against your actual numbers. |
Scroll the table sideways to see all of it.
Why several rows say to ask us. The numbers that depend on your specific deal get quoted on the call, because a single posted figure would have to be the worst case and would be wrong for most deals. Send us the address, the purchase price and the rehab budget and you will get real numbers from the person who actually approves the loan. Call or text 267-228-3289, email Josh@JDMCapitalLending.com, or send the deal through the form.
Terms are subject to underwriting and approval and are not a commitment to lend.
How is fix and hold different from fix and flip?
The loan does the same job. The exit is what changes, and the exit is what you should underwrite to.
| Compared on | Fix and flip | Fix and hold |
|---|---|---|
| How the loan is repaid | You sell the property | You refinance into long term financing, or sell later |
| What has to be true at the end | A buyer at your target price | A rent roll a permanent lender will underwrite |
| What the rehab is for | Resale appeal at the top of the comp range | Durability and a rent number, which is not always the same scope |
| Biggest cost at the end | Realty transfer tax and selling costs | Refinance closing costs, and any gap between the payoff and what the permanent lender will advance |
| Who provides the exit | The open market | A DSCR or portfolio lender, which is not us |
The practical consequence is that a hold deal has two underwriting events, ours and the permanent lender's, and they do not use the same test. We look at cost, value and your plan. They will look at whether the rent covers the debt service. A property that pencils for us can still fail their test if the rent comes in under your projection, which is why the next section matters more than the loan terms do.
What rent will the property actually get?
Underwrite the refinance before you buy, using real rent numbers rather than optimistic ones. The average apartment rent in Philadelphia was $2,036 as of August 1, 2026, up 1.99% year over year, on an average unit size of 784 square feet. By unit size the averages were $1,488 for a studio, $1,859 for a one bedroom, $2,350 for a two bedroom and $3,520 for a three bedroom.
The spread across the city is wide enough that a citywide average is close to useless for a specific deal. At the top, Navy Yard averaged $3,657, Hawthorne $3,533 and Society Hill $3,480. At the other end, Ogontz averaged $1,124, Cobbs Creek $1,162 and Frankford $1,163. Roughly 32% of Philadelphia rentals fall between $1,501 and $2,000. Underwrite to what your own blocks rent for. The citywide figure will flatter you.
Rent figures from RentCafe market analysis using Yardi Matrix and US Census Bureau data, as of August 1, 2026. These are apartment averages and will not map cleanly onto a single family rowhome rental, so treat them as a sanity check rather than a comp.
Why does JDM not offer DSCR loans?
Because we do one thing, in one market, and we would rather be the fastest option on short term rehab money than a mediocre option on everything. There is a real benefit to you in that: we have no reason to steer you toward a permanent product we happen to sell. When we tell you a deal does not work, that is the only thing we are telling you.
If you are running the BRRRR pattern, buy, rehab, rent, refinance, repeat, we are the buy and rehab. Read hard money versus DSCR loans for exactly where that handoff goes wrong and the five questions to put to your permanent lender before you buy. Read fix and flip loans if the plan is actually to sell, because the underwriting and the rehab scope should be different.
Does the 10 year tax abatement apply to a rehab?
In Philadelphia, yes, and it is under used. Under Ordinance 961 there is a 10 year abatement on the improvement value for rehabilitation of existing residential property of one or more units. The deadline is the part people miss: you must apply by December 31 of the year the building permit is issued. The abatement then begins on January 1 following certified completion. New residential construction has its own version, with a 60 day application window from permit issuance.
For a hold, this reduces your carrying cost for a decade, which feeds straight into the debt service coverage the permanent lender will calculate. It also cannot be combined with the Homestead Exemption, which is irrelevant for an investment property but matters if you ever sell to an owner occupant.
Abatement terms and deadlines per the City of Philadelphia. Verify current rules before relying on them, and note that abatements are a city program and do not exist in the same form in the suburban counties.
What is the market doing for buy and hold right now?
Investor demand is holding up better in this metro than nationally. Investors bought 21% of homes sold in the Philadelphia metro in Q1 2026, 829 homes, down only 1% year over year, against a 6% national decline. Nationally the pattern by price tier is worth knowing if you are choosing what to buy: purchases of low priced homes fell 10%, mid priced fell 6%, and high priced fell only 1%. Redfin's read is that thin margins are squeezing the bottom of the market hardest.
On the buy side, the Philadelphia city median was $236,000 in the fourth quarter of 2025 on Kevin Gillen's index at Drexel, which counts all recorded arms length deed transfers rather than MLS sales alone. Ten year appreciation on that index runs 89.9%. Assessments are moving fastest in the neighborhoods on the edge of gentrified areas: citywide the median assessment change was 3%, while Kensington rose 15.3%, Mantua 15% and Kingsessing 12%. Those are the blocks where rehab candidates and rent growth currently overlap, and they are also where holding costs are rising fastest.
Investor share from the Redfin Investor Report Q1 2026, published May 28, 2026. City price levels from the Drexel Lindy Institute Philadelphia House Price Index, published February 5, 2026. Assessment changes from Philadelphia Inquirer analysis of newly released property assessments, July 8, 2026.
Fix and hold loan questions
What is a fix and hold loan?
A fix and hold loan is short term financing that covers the purchase and renovation of a property you plan to keep as a rental, rather than sell. It bridges the period when the property is not yet rentable and therefore not yet financeable by a conventional or DSCR lender. Once it is stabilized and rented, you refinance into permanent financing and repay the short term loan.
Is this the same as a bridge loan, a fix to rent loan or a BRRRR loan?
Same loan, different labels, and the industry has never settled on one. All of these describe what is on this page:
- Fix to rent and rental rehab loan, the closest to what it actually does.
- Buy and hold loan and BRRRR loan, named after the strategy rather than the product.
- Bridge loan, which usually implies less renovation and a shorter hold, but overlaps heavily.
The one label that means something different is DSCR loan. That is the permanent mortgage that comes afterwards, and we do not offer it. Describe the project to us and we will not worry about what it is called. If you want the distinction spelled out, read hard money versus DSCR loans.
Do you lend in my town?
If it is in Philadelphia, Bucks, Montgomery, Delaware or Chester county in Pennsylvania, or Camden, Gloucester or Burlington county in New Jersey, yes. We lend in all 339 municipalities across those eight areas. See where we lend for the full breakdown.
Can I refinance out with you?
No. We do not offer DSCR or long term rental loans, so the permanent financing has to come from another lender. Line that up early. We are happy to talk through what they will likely ask for, because we have watched a lot of these hand offs happen.
Should I rent it before or after I refinance?
Most permanent lenders want to see the property stabilized, which usually means leased, before they will underwrite it on its rent. That means the sequence is rehab, then lease, then refinance, and your short term loan has to cover all three stages. Ask your permanent lender what they count as stabilized, since it varies.
What if the rent comes in below my projection?
Then the refinance is smaller than you planned and you have a gap to cover at payoff. This is the main risk in a hold deal and it is why we push on the rent number during underwriting rather than after. If the numbers only work at the top of the rent range, that is worth knowing before you buy rather than after the rehab.
Do you lend on multi unit properties?
Tell us about the property and we will tell you straight away. We lend on non owner occupied investment property, these are business purpose loans, and the specific property types we will and will not take are worth a two minute call rather than a guess from a web page.
Send us the deal
Address, purchase price, rehab budget and your rent target is enough to get a real answer.