Portfolio Loans in San Jose

Because the scale math here inverts fast. At the San Jose metro's mid-tier single-family value of $1,709,383, a ten-door portfolio runs roughly $13.9 million of collateral, so an investor past a handful of Santa Clara County rentals is already carrying small-balance-commercial-sized exposure on separate mortgages. One blanket loan with a single payment is simpler to manage than reconciling ten notes, and it also puts one lender across the whole file instead of ten. See DSCR loans if you would rather finance doors one at a time. Subject to underwriting.

The sold property comes out of the loan and the rest of the portfolio stays financed. Portfolio loans through us are structured with the option to release individual properties as you sell them, so one exit does not force a refinance of the whole file. What that sale costs depends on which city the door sits in: San Jose charges a city conveyance tax of $3.30 per $1,000 of price on top of the county's $1.10, plus the Measure E tax above a $2,300,000 threshold. Only two other cities in the county charge a city transfer tax at all, Palo Alto and Mountain View, and Mountain View's rate jumps to $16.10 per $1,000 above $6 million. Everywhere else in Santa Clara County the combined rate is $1.10 per $1,000 with no Measure E. A court-ordered foreclosure transfer or a deed in lieu of foreclosure is exempt from both the city and county tax in San Jose; a nonjudicial trustee's sale under Civil Code section 2924 is a different mechanism and whether it shares that exemption is not confirmed, so do not assume it does. Talk to us about how a release interacts with your specific loan documents.

An LLC does not get you out of Measure E, and it adds its own California cost. San Jose's transfer tax ordinance specifically reaches a transfer or acquisition of ownership interests in a legal entity that would count as a change of ownership of the entity's real property under state law, so restructuring a San Jose property into or out of an LLC does not avoid the tax the way it might elsewhere. Separately, every LLC doing business in California, including an out-of-state LLC that owns California rentals, owes the state's $800 annual LLC tax, plus a gross receipts fee that runs from $900 at $250,000 of total income up to $11,790 at $5,000,000 or more. Structuring the right entity for a multi-door San Jose portfolio is a conversation for your CPA and attorney, not a general rule.

No, and a mixed-vintage portfolio runs mixed rent regimes inside one loan. San Jose's Apartment Rent Ordinance caps increases at one 5% increase per 12 months, but only on apartment buildings of three or more units that were built and occupied before September 7, 1979, roughly 38,000 units citywide. A single-family rental, a duplex, a condo, an ADU or a post-1979 apartment in the same portfolio is not covered and falls back to state law instead. A ten-door San Jose portfolio that mixes a 1965 fourplex with a 2005 condo is running two different rent ceilings under one blanket loan, so pull each property's construction and first-occupancy date individually rather than underwriting the portfolio on one assumed cap.

Parcel by parcel, not as one countywide average. Every parcel sits in its own tax rate area, and there is real spread: San Jose alone has 204 tax rate areas running from about 1.143% to 1.312% of assessed value before the countywide water district line, depending on which school and college bonds stack on that parcel, while cities like Morgan Hill sit at a flat 1.126% across all 12 of its tax rate areas. San Jose parcels also carry the city's rental business tax, the Measure E transfer tax on sale, the Apartment Rent Ordinance and the Tenant Protection Ordinance; a Santa Clara, Sunnyvale, Milpitas or Morgan Hill door in the same portfolio sits outside all four. Mountain View runs a rent stabilization ordinance of its own, so a door there is not on state law either. Each newly acquired property also generates its own supplemental tax bill on change of ownership, separate from the regular secured bill, so a portfolio that adds doors through the year should expect a supplemental bill timed to each closing rather than one annual number.

Each property carries its own hazard policy; a blanket loan does not merge coverage into one. Santa Clara County's wildfire exposure sits mostly at the edges of the metro, the east foothills toward Alum Rock and the southern hills toward Almaden and the Santa Cruz Mountains side of Los Gatos and Saratoga, not the valley floor where most rental doors sit, but a property's own fire hazard severity zone still has to be checked individually before quoting coverage. No countywide average homeowners premium or FAIR Plan exposure figure has been published from a primary source, so budget for a real per-address quote on every door rather than one portfolio-wide number, and price flood coverage separately wherever a parcel's FEMA zone calls for it.

Five or more properties and $500,000 of loan. Both floors are easy to clear here. At the San Jose metro's mid-tier single-family value of $1,709,383, five doors is already roughly $8.5 million of collateral (1,709,383 x 5 = 8,546,915), so the question in Santa Clara County is almost never whether the portfolio is big enough. It is whether you would rather carry one consolidated payment with individual property release than five separate notes. Subject to underwriting.

No. We count doors across Santa Clara County, not just the city. A portfolio that mixes San Jose with Santa Clara, Sunnyvale, Milpitas or Morgan Hill rolls into one blanket loan with a single payment and the option to release individual properties as you sell. Where the doors sit still matters to the file, because a San Jose parcel carries the city's rent, tenant and transfer tax layer that a door elsewhere in the county does not. Subject to underwriting.