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 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’s solution
Jaken 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.
Next steps
Model your Gary or Northwest Indiana deal: DSCR calculator · Pre-qualify · (833) 264-7776