Last updated: December 2025
Quick answer
Financing a $3M–$10M multifamily renovation for buildings up to 30 units is best achieved through private lenders who offer fast, flexible funding based on after-repair value (ARV).
These loans cover both acquisition and rehab costs and are ideal for value-add strategies that increase rents and long-term returns.
The multifamily investment market continues to offer opportunities for smart operators, especially those targeting small- to mid-size apartment buildings with value-add potential.
Where traditional lending fails
For buildings up to 30 units, many experienced investors are turning to $3M–$10M private renovation loans to modernize interiors, improve amenities, and boost overall asset performance.
However, traditional lenders often fall short when it comes to speed, flexibility, and understanding the unique challenges of multifamily renovation projects.
In this article, we’ll walk you through how to finance a renovation of this scale, how private lenders like Marquee Funding Group evaluate these deals, and what you need to secure fast, reliable capital.
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Why multifamily renovations are a top strategy in 2026
In a high-demand rental market, well-located but underperforming properties represent a major opportunity. Developers who can upgrade units, enhance curb appeal, and reposition a property in its market can unlock significant gains in:
- Rental income
- Occupancy rate
- Tenant quality
- Property value
- Net operating income (NOI)
Rising rental fundamentals, as reflected in Federal Reserve data on rent growth, continue to support value-add renovation strategies that directly translate into higher NOI.
These improvements not only boost short-term cash flow but also improve long-term refinancing or exit options.
But achieving this at scale, especially for 10 to 30 unit buildings, requires access to renovation capital that aligns with your timeline and terms.
Why private loans are ideal for multifamily rehab
Unlike banks or agency lenders (e.g., Fannie Mae/Freddie Mac), private lenders specialize in:
- Fast approvals and closings
- Lending on non-stabilized or vacant buildings
- Customized loan structures based on your project plan
- Basing loan amounts on future value (ARV)
- Funding complex or phased renovations
Bank underwriting constraints, as reflected in the Federal Reserve’s Senior Loan Officer Survey, help explain why private renovation loans have become the preferred tool for transitional multifamily assets.
Marquee Funding Group, for example, can fund these projects within days, allowing borrowers to move quickly in competitive markets and reposition properties without delay.
Typical structure of a $3M–$10M multifamily renovation loan
Here’s how private multifamily renovation loans are typically structured:
| Feature | Typical Terms and Ranges |
| Loan amount | $3M–$10M+ |
| Property type | 5–30 unit buildings (residentially zoned) |
| Term length | 12–24 months (extensions available) |
| Interest rate | 9%–12%, interest-only |
| Points | 1.5–3 points upfront |
| LTC (loan-to-cost) | Up to 85% of project cost |
| LTV (loan-to-value, ARV) | Up to 70% of after-repair value |
| Interest reserve | Often included in the loan structure |
| Draw schedule | Released based on construction progress |
What private lenders look for in these projects
When evaluating a $3M–$10M renovation for a multifamily building with up to 30 units, private lenders consider both the asset’s current condition and the upside after improvements.
Here’s what matters most:
1. Property location and potential
- Is the property in a high-demand rental market?
- What is the condition of the surrounding properties?
- Are rents below market, and can they be increased post-renovation?
2. Detailed renovation scope
Your renovation plan should include:
- Unit-by-unit upgrades (kitchens, bathrooms, flooring)
- Common area enhancements (lobbies, hallways, amenities)
- Exterior improvements (paint, roofing, landscaping)
- CapEx items like HVAC, plumbing, electrical
A detailed line-item construction budget is essential for underwriting.
3. Exit strategy
Lenders want to see how the loan will be repaid. This could be through:
- Refinance into permanent financing (bridge-to-perm)
- Sale after stabilization
- Stabalized Cash flow after lease-up
Your pro forma should demonstrate improved NOI, increased rents, and realistic operating expense projections.
How to use a renovation loan to cover both acquisition and rehab
Many real estate entities use a single loan to finance both the purchase and renovation of a value-add multifamily building.
Here’s how it works:
- You identify a 25-unit building priced at $5M
- Renovation budget is $1.2M
- Total project cost: $6.2M
- Projected ARV after renovation: $8.5M
Marquee may offer a loan up to 70% of ARV—$5.95M in this case—which can cover:
- The bulk of the acquisition
- 100% of the renovation costs
- Interest reserve for 12–18 months
This structure allows you to control a valuable asset with limited upfront capital and complete renovations without additional loans.
When bridge-to-perm financing is the right move
Once the property is stabilized and fully leased at market rents, you may be eligible to refinance into a long-term loan with better terms. This approach is known as a bridge-to-perm strategy and is ideal when:
- Your short-term loan is nearing maturity
- You’ve increased NOI significantly
- You want to hold the property for cash flow or long-term appreciation
Many investors use this model repeatedly to scale their portfolio, recycling capital into the next deal.
Key documents needed for approval
To expedite your loan approval with a private lender, have the following ready:
- Purchase contract or property details
- Rent roll and income/expense statements
- Renovation budget and scope of work (SOW)
- Contractor bids and project timeline
- Exit strategy (refi or sale)
- Comps supporting ARV
Marquee can often issue same-day approvals when deals are clearly presented.
Maximize your multifamily investment with the right renovation loan
Multifamily buildings with 10 to 30 units offer powerful value-add potential—if you can act quickly and fund the renovations that elevate the asset.
With fast closings, flexible terms, and a focus on real-world property potential, Marquee Funding Group helps you secure $3M–$10M or more to acquire, upgrade, and reposition multifamily properties for long-term success.
Whether you’re scaling your portfolio or repositioning an existing building, our common-sense underwriting and personalized approach help you move forward with confidence.
Planning a $3M–$10M renovation on a 10–30 unit multifamily property?
If your LLC or corporation has completed 3+ projects, Marquee Funding Group offers fast, ARV-based financing tailored to value-add strategies with interest reserves, phased draws, and closings in as little as 7 business days.
Apply today and unlock the capital to reposition your next multifamily asset.
Frequently asked questions: Finance a $3M–$10M multifamily renovation
Yes. Private lenders like Marquee fund non-stabilized assets, including vacant or partially leased buildings, as long as the project makes financial sense.
Absolutely. Equity-based renovation loans can unlock capital for upgrades, repositioning efforts, or value-add improvements.
No, but Marquee provides a structured draw schedule tied to construction milestones. It’s your job to manage contractors and progress, though inspections may be required for fund releases.
It depends on the deal. Many investors contribute approximately 10%–20% of total project costs. Existing equity in the property may also count toward your contribution.
Yes. Once stabilized, you can refinance into a long-term mortgage to pay off the renovation loan, often at a lower rate with traditional lenders.