Alabama-based real estate investors sought to refinance a 117-unit single-family rental (SFR) portfolio originally acquired in 2022. Many lenders still underwrite scattered-site portfolios like these more cautiously than traditional multifamily, since each unit carries its own title, condition profile, and lease.
In this case, the sponsors' challenge was not creditworthiness. It was packaging: presenting a complex portfolio in a way that let lenders underwrite it efficiently and consistently across all 117 units at once, rather than unit by unit.
Deal snapshot
| Metric | Terms |
|---|---|
| Property type | Single-family rental portfolio, 117 units |
| Deal type | Refinance |
| Market | Birmingham, Alabama |
| Loan amount | $7.04M |
| Rate | 6.49% fixed |
| Term | 5 years |
| Amortization | 20 years |
| Max LTV | 75% |
| Lender fee | 0.50% |
Why it closed
By running banks, credit unions, and private lenders simultaneously, Gumption kept the deal moving even when individual institutions hesitated, and while many debt funds were very interested in the project, the winning lender was a local bank that was able to arrange a wealth-management style solution to maximize proceeds. The result: a 5-year fixed-rate refinance at 6.49% and 75% LTV. This facility included nearly $1M in cash-out proceeds.
The takeaway Gumption drew, and one that generalizes to most SFR portfolio financing: this was not a credit problem, it was a packaging problem, and it is solvable by presenting the portfolio consistently to a wide variety of lender types rather than waiting on one lender's underwriting timeline.
Have an SFR portfolio to refinance? Run your deal to Gumption's full lender network at once instead of waiting on a single institution.