Deal snapshot
| Location | Fountain Square, Indianapolis, IN |
| Property type | Side-by-side duplex (2/1 per unit) |
| Loan type | Hard money BRRRR → Indiana DSCR refi |
| Loan amount | $166,000 bridge (85% LTC) → $150,500 DSCR refi |
| Close time | 10 business days acquisition |
Investor challenge
The sponsor needed to close an estate-sale duplex in Fountain Square before a faster cash buyer dropped price. Conventional financing could not meet the 10-day decision window, and one side still had a below-market tenant — rehab had to proceed with partial occupancy without blowing the draw schedule.
Jaken’s solution
Jaken structured 85% LTC hard money at 10.5% interest-only with four milestone draws tied to electrical, HVAC, kitchen/bath, and finish scopes. Proof of funds on Day 2 secured the contract; file closed on Day 10 with LLC vesting and line-item scope aligned to Marion County duplex comps.
Outcome
After $48,000 rehab and stabilization at $2,750/mo gross, the property appraised at $215,000. Indiana DSCR refi at 70% LTV returned ~$32,000 for the sponsor’s next Near Eastside acquisition.
Indiana DSCR hub: DSCR loans Indiana · hard money lenders Indianapolis · Fountain Square neighborhood
Acquisition
Property: Duplex — one side vacant, dated mechanicals, active tenant other side at below-market rent
Purchase: $118,000 · LLC vesting
Close: Day 10 · 85% LTC hard money at 10.5% IO
Seller situation: Estate — four offers, two conventional (30+ day), one cash lowball. Proof of funds Day 2 won.
Hard money and rehab
| Draw | Scope | Release |
|---|---|---|
| 1 | Panel, rough electrical, demo vacant side | 25% |
| 2 | HVAC both units, plumbing passed | 30% |
| 3 | Kitchens/baths, flooring | 25% |
| 4 | Finish + punch | 20% |
Total rehab: $48,000 · 11 months calendar (tenant coordination on occupied side)
DSCR refi math
| Item | Amount |
|---|---|
| Appraisal (stabilized) | $215,000 |
| DSCR loan (70% LTV) | $150,500 |
| Rate | 8.1% · 30-year |
| Monthly P&I | ~$1,108 |
NOI: Effective gross $2,585 after vacancy → NOI ~$1,770/mo → DSCR ~1.22 at lender file.
Cash out: ~$32,000 extracted toward next door.
Why this BRRRR cleared in a partially occupied building
Two things made this deal harder than a vacant flip — and the structure solved both. First, the 10-day estate window: a Day-2 proof of funds let the sponsor win against two conventional offers stuck in 30-day underwriting. Speed, not price, won the contract. Second, one side stayed occupied at below-market rent during rehab, so the draw schedule was sequenced unit-by-unit (vacant side first) to keep work moving without a tenant dispute.
The exit worked because Indiana is a genuine cash-flow market: at $2,750/mo gross on a $215K stabilized value, NOI cleared a ~1.22 DSCR even at a conservative 70% LTV. The key discipline was modeling Marion County taxes at the post-rehab assessed value, not the estate’s old bill — the single most common reason Indianapolis duplex refis miss coverage.
Takeaway: on occupied value-add, win on speed and sequence draws around the tenant; then let the rent — underwritten with honest taxes — size the cash-out.
Related programs
Pre-Qualify for Indianapolis Hard Money · (833) 264-7776