Deal snapshot
| Location | Gary, Indiana |
| Property type | Two-flat (2/1 per unit) |
| Loan type | DSCR cash-out refinance — no seasoning |
| Loan amount | $127,500 cash-out at 75% LTV |
| Close time | 12 business days refi |
Investor challenge
A repeat Jaken Finance Group borrower needed to extract equity from a stabilized Gary two-flat without waiting for 12-month bank seasoning or triggering a taxable sale. The sponsor had completed rehab six months prior and wanted capital for a Hammond ranch flip already under contract.
Jaken Finance Group’s solution
Jaken Finance Group placed a DSCR cash-out refinance at 75% LTV on a $170,000 appraisal using select no-seasoning guidelines for documented rehab and executed leases. Underwriting relied on property NOI — not W-2 income — with Lake County taxes and insurance at current bills.
Outcome
$127,500 cash-out to the sponsor’s LLC funded the Hammond acquisition down payment while the Gary asset continued cash-flowing at $2,900/mo gross. The sponsor retained the asset in portfolio.
Gary multi-family DSCR: DSCR loans Gary IN multi-family · DSCR loans Indiana · Northwest Indiana corridor guide
Acquisition and rehab (prior hard money leg)
Property: Two-flat — one side vacant at purchase, shared boiler
Purchase: $72,000 · LLC vesting
Rehab: $48,000 — mechanical, kitchens/baths, both units
Bridge close: Day 9 · 88% LTC hard money at 10.75% IO
Stabilization
| Unit | Rent | Lease |
|---|---|---|
| Unit 1 | $1,450/mo | 12-month executed |
| Unit 2 | $1,450/mo | 12-month executed |
| Gross | $2,900/mo | Both occupied |
DSCR refi math
| Line item | Monthly |
|---|---|
| Gross rent | $2,900 |
| Vacancy (5%) | −$145 |
| Taxes + insurance | −$485 |
| Maintenance / PM (10%) | −$290 |
| NOI | $1,980 |
| P&I on $127,500 @ 7.85%, 30yr | $1,635 |
| DSCR | 1.21 |
Why no-seasoning mattered on this deal
Most cash-out refinances make you wait 12 months before lending against the new, higher value — a delay that strands your rehab capital and stalls the next purchase. Here, the sponsor had a Hammond flip already under contract and couldn’t afford to wait or to trigger a taxable sale.
Select no-seasoning DSCR guidelines solved it by lending against the appraised value now, provided the file was clean: documented rehab receipts, executed 12-month leases with deposits, and entity docs ready on Day 1. Underwriting leaned entirely on property NOI — $1,980/mo against $1,635 debt service for a ~1.21 DSCR — with Lake County taxes at current assessed value. That discipline is what let 75% LTV clear without overstating coverage.
The result: $127,500 pulled tax-deferred to fund the next down payment while the Gary two-flat kept cash-flowing in the portfolio — the engine that makes a repeat-buyer BRRRR loop actually compound.
Takeaway: if you’re scaling, ask about no-seasoning at acquisition — and keep rehab receipts and leases organized so the refi can move in days.
Deal timeline — full BRRRR arc
| Phase | Date / duration | Event |
|---|---|---|
| Acquisition | Month 0, Day 9 | $72,000 purchase — one side vacant, shared boiler, LLC vesting |
| Rehab | Months 1–4 | $48,000 scope — mechanical, kitchens/baths, both units; four milestone draws |
| Lease-up | Month 5 | Unit 1 leased at $1,450/mo; Unit 2 tenant retained at same rate post-renovation |
| Stabilization | Month 6 | Both units on 12-month executed leases; security deposits documented |
| Refi application | Month 6, Day 1 | Complete file submitted — appraisal ordered, entity docs current |
| Cash-out close | Month 6, Day 12 | $127,500 cash-out at 75% LTV on $170,000 appraisal |
| Capital deploy | Month 6, Day 14 | Hammond ranch flip EMD funded from Gary equity extraction |
Total hold from bridge close to DSCR cash-out: six months — half the 12-month bank seasoning clock the sponsor would have waited on a conventional refi.
Lake County and Northwest Indiana market context
Gary sits in Lake County, Indiana — part of the Chicago-Northwest Indiana corridor where basis on two-flats runs $55K–$95K on distressed inventory and stabilized values on renovated duplex product reach $150K–$185K depending on block and school district. This property sat in a walkable Gary neighborhood with Hammond and East Chicago comps supporting the $170K appraisal — not the downtown Gary industrial blocks that trade on land value alone.
Lake County property taxes on two-flats assess aggressively post-rehab. The sponsor modeled $485/mo combined taxes and insurance at refi — $310/mo taxes on the post-renovation assessed value plus $175/mo landlord insurance on a two-unit with updated electrical. Underwriting used the current tax bill, not the seller’s pre-rehab assessment; that discipline is why the 1.21 DSCR held at appraisal.
Rental demand in this corridor is working-class stable — tenants employed in healthcare, logistics, and Chicago commuter rail jobs. $1,450/side for renovated 2/1 units sits at the 50th percentile of Lake County two-bedroom rents in 2026 — not aspirational pricing that triggers vacancy during refi underwriting.
The Hammond acquisition the sponsor funded with Gary cash-out sat 12 miles north on a 1980s ranch flip thesis — see Northwest Indiana fix-and-flip corridor for how Gary BRRRR equity feeds Hammond velocity deals.
Full economics — bridge leg through refi
| Line item | Amount |
|---|---|
| Purchase | $72,000 |
| Rehab | $48,000 |
| All-in cost | $120,000 |
| Bridge loan (88% LTC) | $105,600 @ 10.75% IO |
| Sponsor cash in (bridge gap + carry) | ~$22,400 |
| Appraisal at refi | $170,000 |
| DSCR cash-out loan (75% LTV) | $127,500 @ 7.85%, 30-year |
| Bridge payoff at refi | −$105,600 |
| Refi closing costs | −$4,800 |
| Net cash to LLC | ~$17,100 |
The $127,500 figure is the cash-out loan amount — gross refi proceeds. After paying off the $105,600 bridge and ~$4,800 in closing costs, the sponsor received ~$17,100 net to the LLC operating account, combined with prior reserves to fund the Hammond ranch flip earnest money. The asset retained ~$42,500 in equity ($170K − $127.5K) while cash-flowing ~$345/mo ($1,980 NOI − $1,635 P&I).
Bridge carry (6 months @ 10.75% IO on avg $100K balance): ~$5,375
Refi vs taxable sale: Sale at $170K would net ~$38K after costs but trigger recapture and remove $2,900/mo gross from portfolio. Cash-out refi preserved the income stream and deferred tax event.
Why Gary two-flats beat single-family BRRRR here
On the same $120K all-in, a Gary SFR would stabilize at $1,350/mo gross on a $155K appraisal — DSCR ~1.08 at 75% LTV. The two-flat structure doubled gross rent on one roof, one boiler, and one tax parcel. Shared mechanicals were the risk: the $48K rehab included $8,200 boiler replacement — without that line item, the refi appraiser would have flagged deferred maintenance and capped value at $155K.
Operator lessons
No-seasoning requires a clean file on Day 1. The sponsor maintained a Google Drive folder with every draw invoice, permit, and lease from acquisition — refi conditions cleared in one business day because nothing was reconstructed at month six.
Lease structure matters. Both leases were 12-month terms with first month + security deposit documented in the LLC’s operating account — not month-to-month arrangements that DSCR underwriters discount.
Entity continuity. The Gary asset stayed in the same LLC from bridge through refi — no deed transfer that triggers seasoning resets on some investor products.
Repeat borrower pricing. This was the sponsor’s fourth Jaken Finance Group file in Lake County. Prior deals in Hammond and East Chicago established execution track record that supported 75% LTV on no-seasoning guidelines where first-time Gary sponsors often cap at 70%.
Cross-border capital stack
The sponsor simultaneously held a Bridgeport Chicago two-flat (separate Jaken Finance Group relationship) while extracting Gary equity — geographic diversification across Illinois flip velocity and Indiana cash-flow holds. See Bridgeport two-flat BRRRR case study for the Chicago leg of this portfolio build.
Next steps
Model your Gary or Northwest Indiana deal: DSCR calculator · Pre-qualify · (833) 264-7776