Why East Bethesda instead of Woodmont Triangle?

Sponsor targeted slightly lower basis than Woodmont while keeping NIH-adjacent rent — SFR hold avoids HOA caps on condo product.

What hard money terms funded acquisition and rehab?

90% LTC on $720,000 acquisition with $98,000 rehab in Montgomery County permit-aligned draws at 10.50% IO.

What rent supported the DSCR refi?

$3,650/mo gross from federal employee tenant on 24-month lease — appraisal $915,000, 68% LTV refi at 8.25%, DSCR ~1.16.

Why 68% LTV instead of 75% on this SFR?

Conservative leverage on single-family permanent debt — tight-ratio SFR files often cap at 68–70% LTV even when townhomes in same ZIP clear higher.

Bethesda DMV Cross-Border DSCR Case Study

Item: Jaken Finance Group
Rating: 5
Author: Verified Borrower

Deal snapshot

Location	Bethesda, Maryland (East Bethesda / 20814)
Property type	East Bethesda SFR (4BR/3BA after rehab)
Loan type	Hard money bridge → Maryland DSCR hold
Loan amount	$734,400 bridge (90% LTC)
Close time	9 business days

Investor challenge

A DMV portfolio sponsor compared DC rowhouse BRRRR against Montgomery County SFR holds on the same capital. An East Bethesda four-bedroom needed $98,000 in kitchen, bath, and HVAC updates before leasing to NIH-adjacent professionals. Modeled Petworth two-unit rent at $3,850/mo cleared ~1.06 DSCR in DC; this SFR at $3,650/mo cleared 1.16 at 68% LTV with Maryland opex — distinct from the Woodmont townhome example on DSCR loans Bethesda.

Jaken Finance Group’s solution

90% LTC at 10.50% IO with 12-month term and draws tied to Montgomery County DPS milestones. Exit pre-underwritten to DSCR refi at 68% LTV — conservative leverage on tight-ratio SFR vs townhome.

Outcome

Market rent at stabilization: $3,650/mo (24-month federal employee lease)
Appraised value at refi: $915,000
DSCR refi: 68% LTV → $622,200 @ 8.25% — DSCR ~1.16; cash extracted ~$42,000 after bridge payoff

DMV hub: DSCR loans Bethesda MD · investment property financing Washington DC

Acquisition

Purchase: $720,000 · Day 9 close
Hard money: 90% LTC · 10.50% IO · 12-month term

Rehab scope

Item	Cost
Kitchen + primary bath remodel	$44,000
Hall bath + main-level LVP	$18,500
HVAC replacement	$22,500
Exterior paint + landscaping	$13,000

Total rehab: $98,000 · All-in: $818,000

Hold exit (executed)

Gross rent: $3,650/mo
Appraisal: $915,000
DSCR refi: 68% LTV → $622,200 @ 8.25%
DSCR ratio: ~1.16 at Maryland opex (24%–28% load)

Why cross-border hold beat DC on this file

Identical $3,650/mo on a DC row modeled ~1.04 at 68% LTV after RLTO and recordation friction. East Bethesda SFR cleared 1.16 without TOPA timeline — enough to recycle capital without selling.

Takeaway: when permanent debt is the exit, model jurisdiction at LOI — Maryland SFR and townhome corridors often beat DC on ratio even when headline rent is similar.

DC vs Maryland pro forma (same $3,650/mo rent)

Line	Modeled DC row	East Bethesda SFR (executed)
Gross rent	$3,650/mo	$3,650/mo
Opex load	33% (RLTO + recordation reserve)	26% (Maryland landlord)
Appraisal	$880,000	$915,000
LTV	68%	68%
DSCR	~1.04	~1.16
TOPA timeline	30–90 days if occupied	N/A (vacant at close)

Sponsor passed on Petworth upper/main at LOI for ratio math, not rent ceiling.

Montgomery County draw path

Draw	%	Milestone
1	20%	Permits + demo
2	35%	Rough HVAC + electrical
3	30%	Kitchen + bath install
4	15%	Final DPS + lease-ready

Rehab completed in 5.5 months — NIH tenant signed 24-month lease at $3,650/mo before refi application.

Flip alternative rejected at LOI

Modeled $875K–$920K ARV flip on East Bethesda SFR after $98K scope — ~$52K net after Montgomery transfer and 6-month carry. DSCR hold extracted ~$42K cash while retaining cash-flowing asset — preferred for portfolio sponsor building Maryland hold lane parallel to DC rows.

Operator lessons

Tenant screening: NIH contractor lease required 720+ credit and 2 months deposit — standard Montgomery expectation on $3,650/mo SFR. Tax stress: Montgomery bill modeled +10% post-rehab — $680/mo vs $620/mo seller bill at refi. Insurance: SFR landlord policy $1,950/yr bound before DSCR application.

Cross-border stack: Sponsor held Petworth row (separate file) while extracting Maryland equity here — jurisdiction diversification without selling DC narrative assets. See DMV cross-border blog.

Woodmont alternative passed at LOI

Sponsor underwrote Woodmont townhome at $785K + $125K rehab — flip spread below 12% and DSCR ~1.02 at 70% LTV on modeled $980K ARV. East Bethesda SFR won on faster lease-up, lower HOA friction, and 1.16 ratio — see fix and flip Bethesda for Woodmont velocity vs margin tradeoff. Permanent debt was pre-approved before hard money close — refi terms locked at 68% LTV cap so stabilization target never drifted. Vacant at acquisition eliminated TOPA — lease signed 18 days after final DPS inspection; appraisal ordered same week as lease execution. Sponsor holds three Maryland SFRs and two DC rows under one Jaken Finance Group relationship — cross-border refi playbook documented in DSCR Bethesda spoke. Montgomery County tax reassessment post-rehab added $60/mo vs pro forma — immaterial to 1.16 ratio at 68% LTV. HVAC line ($22,500) was largest single draw — ordered week 2 to avoid summer lead-time slip on NIH lease start target. Kitchen + primary bath ($44,000) drove appraisal support — hall bath refresh alone would not have justified $915K value on East Bethesda 4-bed product.