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Southern Illinois BRRRR vs Chicago Cash Flow: Side-by-Side Math
By Jaken Finance Group · Principal, Jaken Finance Group
Southern IL BRRRR vs Chicago cash flow — all-in basis, rent, RLTO, taxes, rehab costs, DSCR, days on market, and remote ops from Hoffman Estates HQ.
Buy, Rehab, Rent, Refinance, Repeat works differently in Bridgeport brick than in Belleville ranch — not because the acronym changes, but because all-in basis, RLTO, GC pricing, tax reassessment, and days on market diverge enough to flip which deal clears 1.15+ DSCR at refi.
This guide compares Chicagoland BRRRR against Southern Illinois BRRRR and cash-flow holds on the numbers operators ask about on pre-qual calls: basis, rent, landlord law, property tax, contractor costs, permanent debt, listing velocity, and remote management from Jaken Finance Group’s Hoffman Estates headquarters. Strategy depth for Chicago lives in the Chicago BRRRR strategy guide; Southern Illinois geography in the Southern Illinois investor guide.
Two Illinois markets — opposite economics
Both corridors sit in Illinois. They do not share the same investor math.
| Factor | Chicagoland | Southern Illinois / Metro East |
|---|---|---|
| Primary stock | Two-flats, three-flats, bungalows | SFR, duplex, small multifamily |
| Landlord law | RLTO inside Chicago city limits | State law — no RLTO |
| Typical all-in (value-add) | $250K–$550K+ | $95K–$220K |
| Gross rent (stabilized) | $2,200–$6,800/mo on 2–4 units | $950–$2,100/mo on 1–2 units |
| Rehab intensity | Masonry, boilers, shared MEP | Mid-century mechanicals, roofs |
| Permit culture | Chicago DOB / collar municipalities | City-by-city downstate |
| DOM (stabilized exit) | 30–55 days hot corridors | 45–75 days typical |
| Remote ops from HQ | Same-day collar runs | Half-day to Metro East |
Jaken Finance Group funds both at 8.99%–13.5% interest-only hard money on acquisition and rehab, exiting to 5.75%–10.5% DSCR when leases and ratios clear.
All-in basis — where capital actually deploys
Basis drives everything downstream: rehab budget, tax reassessment, flip spread, and LTV at refi.
Chicagoland basis bands (2026)
| Asset type | Purchase | Rehab | All-in |
|---|---|---|---|
| Chicago two-flat (value-add) | $420K–$620K | $75K–$180K | $495K–$800K |
| Chicago three-flat | $550K–$850K | $120K–$220K | $670K–$1.07M |
| Collar SFR (Will / Kane) | $180K–$280K | $45K–$75K | $225K–$355K |
| Collar duplex | $240K–$340K | $55K–$90K | $295K–$430K |
See Chicago two-flat financing for small-multifamily structure.
Southern Illinois basis bands (2026)
| Asset type | Purchase | Rehab | All-in |
|---|---|---|---|
| Metro East SFR (Belleville / Granite City) | $75K–$145K | $35K–$60K | $110K–$205K |
| Metro East duplex | $95K–$165K | $40K–$70K | $135K–$235K |
| Edwardsville / O’Fallon suburban SFR | $165K–$235K | $28K–$48K | $193K–$283K |
| Carbondale / Marion investor SFR | $65K–$120K | $30K–$55K | $95K–$175K |
Metro East hard money covers Belleville-O’Fallon acquisitions; Edwardsville DSCR frames permanent hold math on the SIUE corridor.
Capital efficiency: One Chicago two-flat all-in can fund three to four Southern Illinois BRRRR cycles — if your edge is velocity and ratio, downstate wins. If your edge is appreciation and rent scale per door, Chicago wins.
Rent — gross dollars vs what DSCR lenders count
DSCR underwriters care about documented gross rent minus credible opex, not Zillow estimates.
Chicagoland stabilized rent (renovated, 2026)
| Market | Asset | Gross rent |
|---|---|---|
| Bridgeport / Austin | Two-flat | $2,200–$3,200/mo |
| Humboldt Park / Albany Park | Two-flat | $2,600–$3,600/mo |
| Avondale / Logan Square | Two-flat | $3,000–$4,200/mo |
| Northwest three-flat | Three-flat | $5,000–$6,800/mo |
| Will County SFR | SFR | $1,700–$2,200/mo |
Chicago gross rent is higher — but RLTO and shared-utility economics eat NOI before debt service.
Southern Illinois stabilized rent (renovated, 2026)
| Market | Asset | Gross rent |
|---|---|---|
| Belleville / west St. Clair | SFR | $1,050–$1,350/mo |
| Granite City / Collinsville | SFR / duplex | $950–$1,250/mo per unit |
| Edwardsville / Glen Carbon | SFR | $1,500–$1,950/mo |
| O’Fallon / Shiloh | SFR | $1,450–$1,850/mo |
| Carbondale (SIU market) | SFR / duplex | $900–$1,400/mo |
Lower gross — but opex ratios often land 22%–28% vs 28%–35% on Chicago small multifamily under RLTO.
RLTO — Chicago’s recurring NOI drag
The Residential Landlord Tenant Ordinance applies to most residential rentals inside Chicago city limits. It does not apply to Metro East, Carbondale, or collar suburbs.
| RLTO cost driver | Investor impact |
|---|---|
| Security deposit rules | Wrong handling = delayed eviction + offsets |
| Heat disclosure / landlord-paid heat | NOI haircut on single-boiler two-flats |
| Turnover compliance | $150–$250/mo modeled per door |
| Notice and habitability defenses | Longer vacancy on contested turnover |
| Eviction timeline | 4–9 months contested — budget legal |
Full compliance stack: Chicago RLTO landlord guide.
Southern Illinois operators follow 735 ILCS 705 landlord-tenant rules without Chicago’s local overlay — faster turnover, simpler lease templates, lower counsel spend on routine non-payment cases.
Same gross rent thought experiment:
| Expense bucket | Chicago two-flat ($3,600/mo gross) | Southern IL duplex ($2,200/mo gross) |
|---|---|---|
| Vacancy (5%) | $180 | $110 |
| Property tax | $780 | $320 |
| Insurance | $240 | $145 |
| Maintenance | $290 | $175 |
| RLTO / turnover reserve | $360 | $90 |
| Total opex | ~$1,850 (51%) | ~$840 (38%) |
| NOI | ~$1,750 | ~$1,360 |
Chicago produces $390/mo more NOI on $1,400/mo more gross — but needs $280K+ more all-in basis to get there. Southern Illinois wins cash-on-cash; Chicago wins scale per asset when the refi clears.
Property tax — Cook County vs downstate reassessment
Both corridors reassess toward purchase price. The error is modeling the seller’s homestead bill.
Chicagoland
Cook County triennial reassessment cycles create spike risk on renovated exits. Collar counties (DuPage, Will, Lake) run high absolute taxes with somewhat more predictable appeal paths.
Investor rules:
- Pull Cook County treasurer or collar collector bill on the parcel
- Stress +15% on Chicago holds post-rehab
- Budget property tax appeal consultant time on two-flats crossing $500K appraised
Guide: Chicago Cook County property tax investor guide.
Southern Illinois
St. Clair, Madison, Williamson, and Jackson counties each run separate assessor offices. Effective rates vary more by municipality than Chicagoland outsiders expect — industrial towns vs O’Fallon subdivisions diverge sharply.
Investor rules:
- Model tax at 100% of your purchase price
- Add 10%–15% contingency on 12+ month holds
- Confirm special service areas and drainage districts on suburban Metro East plats
Tax is often the line item that kills a Southern Illinois DSCR that “worked” on the seller’s $890 annual bill.
GC and rehab cost — Chicago premium vs downstate efficiency
Chicago rehab pricing reflects vintage brick, boiler heat, knob-and-tube, Department of Buildings permits, and winter exterior shutdown.
| Scope | Chicago cost signal | Southern IL cost signal |
|---|---|---|
| Cosmetic SFR (1,400 sq ft) | $56K–$105K | $32K–$58K |
| Mid-gut SFR | $105K–$175K | $48K–$85K |
| Full-gut two-flat (both units) | $170K–$280K | $70K–$120K (duplex) |
| Per sq ft (mid-gut) | $75–$125 | $45–$85 |
| Permit timeline (gut) | 8–16 weeks Chicago DOB | 3–8 weeks typical downstate |
| Masonry / tuckpointing | $15K–$40K on 3-story | $5K–$18K on river-town brick |
Detail: Chicago rehab costs per square foot 2026 · Chicago fix-and-flip permits guide.
Southern Illinois rehabs still need licensed GC bids — but draw schedules release faster when inspectors are municipal, not queueing through Chicago DOB winter backlog.
Hard money holds 8.99%–13.5% IO during rehab. A four-month Chicago two-flat gut at $520K all-in costs ~$18,700 in interest at 10.75%. A three-month Belleville SFR at $145K all-in costs ~$3,900 — less capital at risk, faster recycle.
DSCR — permanent debt comparison
The BRRRR wealth event is the cash-out refi. Jaken Finance Group DSCR programs run 5.75%–10.5% fixed or ARM on qualified stabilized rentals.
| Parameter | Chicagoland typical | Southern IL typical |
|---|---|---|
| LTV cash-out | 70%–75% | 70%–75% |
| DSCR minimum | 1.0–1.25 | 1.0–1.25 |
| Seasoning | 0–6 months with rehab proof | 0–6 months with rehab proof |
| Rent docs | Executed lease + RLTO deposits (Chicago) | Executed lease + deposit receipts |
| Expense load | RLTO-adjusted | Reassessed tax modeled |
Chicago exit hub: DSCR loans Chicago. Southern Illinois exit: Edwardsville DSCR and DSCR loans Illinois statewide.
Worked BRRRR — Chicago two-flat vs Metro East duplex
Same operator. Same hard money: 10.75% IO, 88% LTC, 8-month hold to lease.
Deal A — Albany Park Chicago two-flat
| Line | Amount |
|---|---|
| Purchase | $485,000 |
| Rehab | $92,000 |
| All-in | $577,000 |
| Hard money funded | ~$508,000 |
| Stabilized gross rent | $3,400/mo ($1,700 × 2) |
| RLTO-adjusted opex (32%) | ($1,088/mo) |
| NOI | ~$2,312/mo |
| Appraisal | $610,000 |
| DSCR refi 75% LTV @ 7.0% | ~1.11 ratio |
Fundable on select programs — thin. One bad turnover under RLTO breaks refi.
Deal B — Belleville Metro East duplex
| Line | Amount |
|---|---|
| Purchase | $118,000 |
| Rehab | $48,000 |
| All-in | $166,000 |
| Hard money funded | ~$146,000 |
| Stabilized gross rent | $2,050/mo ($1,025 × 2) |
| Downstate opex (24%) | ($492/mo) |
| NOI | ~$1,558/mo |
| Appraisal | $198,000 |
| DSCR refi 75% LTV @ 7.0% | ~1.24 ratio |
Lower gross dollars — stronger ratio. Operator extracts similar percentage equity on one-third the capital.
Financing path: Metro East hard money acquisition → Edwardsville DSCR or statewide DSCR refi.
Days on market — velocity vs yield trade
Days on market (DOM) shapes flip exits and refinance appraisal support — appraisers anchor to recent solds, and stale listings signal soft demand.
| Market | Stabilized rental / resale DOM (2026) | Investor note |
|---|---|---|
| Logan Square / Avondale two-flat | 25–45 days | Competitive when priced to rent roll |
| Bridgeport / Austin value-add | 35–55 days | O-O and investor mix |
| Will County SFR | 30–50 days | Suburban uniform stock |
| Belleville / Granite City | 50–75 days | Price to DSCR, not hope |
| Edwardsville / O’Fallon | 40–65 days | SIUE / Scott AFB demand |
| Carbondale | 55–90 days | Academic-year seasonality |
Chicago DOM rewards fast rehab and RLTO-clean lease-up. Southern Illinois rewards patience — carry at 8.99%–13.5% IO must be in the pro forma when DOM runs 60+ days.
Remote management from Hoffman Estates HQ
Jaken Finance Group headquarters sits at 2300 Barrington Road, Suite 400, Hoffman Estates, Illinois 60196 — Cook County on the northwest collar. That location is not incidental to Southern Illinois strategy: the desk already underwrites Illinois state law, Illinois judicial foreclosure, and downstate tax appeals without treating Belleville like a coastal remote market.
Remote sponsor playbook:
| Function | Chicago corridor | Southern Illinois corridor |
|---|---|---|
| Acquisition drive | Same-day collar and city runs | Half-day to Metro East; full day to Carbondale |
| GC management | Dense contractor bench | Smaller bench — vet two GCs before LOI |
| Property management | Abundant PM options | Interview PMs who know municipal inspection paths |
| Draw inspections | Third-party inspectors weekly | Photo + inspector on milestone draws |
| Legal / eviction | RLTO counsel required in city | County courthouse counsel on state law |
| Refi packaging | Leases + RLTO deposit proof | Leases + reassessed tax pro forma |
Operators in Chicagoland often self-manage first deals; Southern Illinois sponsors more frequently hire local PM on day one because distance magnifies turnover delays.
The financing desk stays the same: hard money lenders Illinois · Southern Illinois investor guide · (833) 264-7776 with the address before inspection period expires.
When Chicago BRRRR still wins
City and collar deals make sense when:
- Appreciation trajectory offsets thin DSCR (Logan Square, Avondale path)
- House-hack changes RLTO math with owner occupancy
- Three-flat scale gross rent supports refi despite opex
- Your edge is neighborhood-specific speed — contractor crews, permit expediters, ward relationships
Read the full cycle: Chicago BRRRR strategy guide · collar vs city BRRRR.
When Southern Illinois cash flow wins
Downstate and Metro East deals make sense when:
- DSCR refi is the primary exit — you need 1.15+ without heroic rent
- Capital velocity matters — recycle three deals per year vs one Chicago two-flat
- You want RLTO-free landlord operations
- Remote hold with local PM beats Chicago operational intensity
Start: Southern Illinois investor guide · Metro East hard money.
Hard money in both corridors
Jaken Finance Group structures BRRRR bridge files statewide:
- 7–14 day acquisition close on qualified files
- 85%–90% LTC with documented scope
- Documentation path to 5.75%–10.5% DSCR permanent debt
- 8.99%–13.5% IO during buy and rehab phases
Pre-qualify · Submit a scenario · (833) 264-7776.
Red flags by geography
Chicago: inherited tenants, open DOB violations, illegal units in pro forma, reassessment surprise, RLTO deposit defects blocking refi.
Southern Illinois: seller tax on pro forma, cross-state Missouri comps, no GC bid before close, academic-market seasonality ignored in Carbondale, open municipal code liens in Granite City.
Bottom line
Chicagoland BRRRR trades operational complexity and capital intensity for rent scale and appreciation optionality. Southern Illinois BRRRR trades lower gross rent for stronger DSCR headroom, RLTO-free operations, and faster capital recycle — especially when managed remotely from a Chicagoland desk that already speaks Illinois law.
Underwrite both with the same refi discipline. The geography that clears 1.15 DSCR on real expenses — RLTO in the city, reassessed tax downstate — is the geography that funds your next acquisition.
Sources
- City of Chicago — Residential Landlord Tenant Ordinance — RLTO scope and requirements
- Illinois General Assembly — Landlord and Tenant Act — state law governing downstate rentals
- Cook County Assessor — Chicagoland reassessment cycles
- St. Clair County Treasurer — Metro East tax bills
- Illinois REALTORS® — Market stats — statewide DOM and pricing context
- Chicago Department of Buildings — permit timelines affecting rehab carry
- Southern Illinois University Edwardsville — Enrollment data — Edwardsville rental demand drivers
Rates, terms and conditions offered only to qualified borrowers and are subject to change without notice. All loans are subject to full underwriting. Jaken Finance Group only finances non-owner occupied investment properties.