A Fix to Rent loan is a type of loan designed for real estate investors who want to purchase a distressed property, renovate it, and then convert it into a rental property. This loan is similar to a Fix and Flip loan, but with a longer-term financing solution that allows investors to hold the property as a rental property for an extended period of time.

The loan works by providing funds for both the purchase of the distressed property and the renovation costs. Once the renovation is complete, the property is converted into a rental property, and the investor can begin collecting rental income. The loan is typically structured as a short-term loan, with a term of 12-24 months, and may include a balloon payment at the end of the loan term.