What leverage did this Greenville hard money file receive?

87% loan-to-cost on acquisition plus 100% rehab in milestone draws.

What DSCR did the Nicholtown hold clear at refi?

Approximately 1.18 at 75% LTV after $1,650/mo gross on a renovated 3/2.

Greenville Nicholtown Hard Money BRRRR to DSCR Case Study

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

Deal snapshot

Location	Nicholtown, Greenville, SC
Property type	1948 3/2 bungalow
Loan type	Hard money BRRRR → South Carolina DSCR
Loan amount	$247,000 bridge → $213,750 DSCR refi
Close time	9 business days

Investor challenge

Estate sale in Nicholtown required Federal Pacific panel replacement and 9-day close. Flip math showed only ~$11K net after carry — sponsor needed hard money for buy+rehab and a DSCR exit that recycled capital into a second Upstate door.

Jaken Finance Group’s solution

87% LTC at 10.75% IO with 100% rehab draws on panel/HVAC-first sequencing. Eleven-month bridge term covered rehab, lease-up, and appraisal seasoning for South Carolina DSCR.

Outcome

Stabilized at $1,650/mo, appraised $285,000, refi at 75% LTV returned ~$38,000 for West Greenville acquisition #2.

Hub: DSCR loans South Carolina · hard money lenders Greenville

Hard money structure

Parameter	Terms
Rate	10.75% IO
LTC	87% + 100% rehab draws
Rehab	$52,000
Close	Day 9 · $195,000

DSCR exit

Metric	Value
Appraisal	$285,000
DSCR refi	75% LTV → $213,750
DSCR ratio	~1.18
Cash returned	~$38,000

Why BRRRR beat the flip here

The deciding factor was the thin resale spread. At a ~$285K ARV with 8% selling costs and IO carry, a straight flip netted only about $11K — not enough to justify the panel replacement and a 9-day scramble. Holding flipped the math: at $1,650/mo on a low Nicholtown basis, the rent cleared a ~1.18 DSCR at 75% LTV, so the refi returned roughly $38,000 tax-deferred and left a cash-flowing asset in the portfolio.

Two Upstate-specific details made the hold underwrite cleanly: inland (non-coastal) insurance kept the expense line low versus a Lowcountry deal, and South Carolina’s 6% non-owner assessment ratio was modeled at the current bill rather than the seller’s owner-occupied rate. Sponsors who skip that tax adjustment watch otherwise-strong rent rolls miss coverage at refi.

Takeaway for Greenville investors: when the flip spread is under ~$15K, price the BRRRR exit before you write the offer — a lower basis plus modest rent often recycles more capital than a sale.

Deal timeline

Week	Milestone
1	LOI accepted — title confirms real property, panel flagged
2	Hard money close Day 9 at 87% LTC
3–8	Panel/HVAC-first draws — occupancy permit path cleared
9–12	Cosmetic completion — lease marketing at $1,650/mo target
13	Tenant placed — Form 1007 ordered
14–16	Appraisal $285K — SC non-owner tax ratio modeled
17	DSCR refi at 75% LTV — ~$38K equity returned

Diligence that saved the refi

Federal Pacific panel scoped before close — $8K line item avoided mid-rehab surprise
Owner-occupied tax bill replaced with 6% non-owner projection at refi
Inland insurance quote bound before appraisal — coastal wind load not applicable
Real-property comps within Nicholtown — no North Main premium imports

When flip net falls under $12K, run BRRRR math before LOI. Lower Upstate basis plus $1,650/mo rent beat resale after carry on this file. Second acquisition funded from refi equity: West Greenville.

Full economics — flip vs BRRRR

Line	Flip scenario	BRRRR (executed)
All-in basis	$247,000	$247,000
Resale / appraised value	$285,000	$285,000
Gross exit	$285,000	DSCR refi $213,750
Selling costs (8%)	−$22,800	$0
IO carry (8 mo @ 10.75%)	−$17,700	−$24,200 (11 mo)
Net to sponsor	~$11,000	~$38,000 cash out + asset
Remaining asset	$0	Cash-flowing rental

Nicholtown market context

Nicholtown sits between downtown Greenville reinvestment and affordable housing demand — basis runs $180K–$220K on distressed 1940s stock with $45K–$65K rehab bands for panel/HVAC-first scopes. Sponsors who comp North Main or Augusta Road premiums into Nicholtown ARV get declined at 75% cap. Inland Upstate insurance typically $1,200–$1,800/yr on renovated 3/2 — model before DSCR refi, not owner-occupied seller bill.

Carry and draw discipline

Month	Draw / event	Cumulative debt
0	Close $195K + holdback	$247K commitment
1–2	Panel + HVAC ($18K)	Draw 1
3–5	Kitchen/bath/floor ($22K)	Draw 2
6–7	Cosmetic + certificate ($12K)	Draw 3
8	Lease marketing	IO only
11	DSCR refi	Permanent

Panel-first sequencing avoided occupancy delay — city inspector would not sign off with Federal Pacific in place. That sequencing choice preserved the 11-month refi timeline. Reserve $3,500 for final punch-list items before appraisal — standard on Nicholtown panel-first scopes.

The South Carolina tax rule behind the refi

The tax adjustment in the diligence list comes straight from state law. Under S.C. Code § 12-43-220, an owner’s legal residence is assessed at 4% of fair market value. All other real property not otherwise listed, including a rental house, is assessed at 6%.

The statute adds two details investors miss:

The 4% ratio must be applied for by an owner who lives there and is domiciled at that address. It does not carry over to a buyer.
A qualifying legal residence also gets the exemption from property taxes levied for school operations under § 12-37-251. A rental loses that exemption as well.

Illustration: At a $285,000 fair market value, an owner-occupied assessment is $11,400. The same house as a rental is assessed at $17,100, which is 50% higher before any millage is applied. The rental bill also carries school operating millage that the seller never paid. That is why the seller’s tax bill on an estate or owner-occupied sale is the wrong number for a DSCR file. Ask the Greenville County auditor’s office for a 6% estimate on the parcel before you set the rent target.

Rent check against HUD’s benchmark

HUD’s FY 2026 Fair Market Rent for the Greenville-Mauldin-Easley metro is $1,612 for a three-bedroom, up from $1,599 in FY 2025. The two-bedroom figure is $1,339.

This file leased a renovated 3/2 at $1,650, about 2% above the three-bedroom FMR. FMR is a gross-rent benchmark that includes an allowance for utilities, so contract rent a little above it on a fully renovated house is supportable. A target 10% or 15% above FMR on a lightly updated house is where appraisal rent schedules start pushing back. See how appraisers build that schedule in the DSCR appraisal and 1007 rent guide.

What a Greenville replay faces in fall 2026

Countywide listing data has softened since this file closed. Realtor.com figures on FRED show:

Greenville County	Sep 2026	Sep 2025
Median listing price	$400,000	$415,000
Median days on market	59	52
Active listings	2,479	2,122

Sources: MEDLISPRI45045, MEDDAYONMAR45045, and ACTLISCOU45045.

Inventory is up about 17%, and homes take a week longer to sell. A thin flip spread gets thinner when the house sits. That makes the hold-versus-sell test at LOI more important, not less. Compare neighborhood exits on the Greenville neighborhoods for flipping guide before you pick one.

Working on a 1948 house: federal lead rules

A house built in 1948 is presumed to have lead-based paint somewhere under later coats. Two federal rules apply to this kind of project.

During the rehab. EPA’s Renovation, Repair and Painting Rule requires firms that disturb paint in pre-1978 homes to be EPA- or state-certified. They must use certified renovators who follow lead-safe work practices. The rule covers many outside contractors and in-house maintenance staff. Put the contractor’s firm certification in the draw packet with the first invoice.

At lease-up. EPA’s Lead-Based Paint Disclosure Rule applies before a renter signs a lease on most pre-1978 housing. The landlord must:

Give the tenant EPA’s lead pamphlet
Disclose any known lead-based paint or hazards, plus available reports
Include a Lead Warning Statement in or attached to the lease
Keep the signed disclosure for three years

Leases of 100 days or less and housing certified lead-free by an inspector are among the listed exceptions. A missing disclosure in the lease file is easy to fix before the refi and awkward to explain after.

Draw packet for a panel-first scope

Panel-first sequencing only saves time if each draw request is complete the first time. On a pre-1978 house with a Federal Pacific panel, send these with every request:

Draw	Documents that release funds
Draw 1 (panel and HVAC)	Electrical permit, contractor’s lead-safe firm certification, inspection sign-off on the new panel, before-and-after photos, lien waiver
Draw 2 (kitchen, bath, floors)	Updated budget with spend to date, photos of each completed room, plumbing inspection if lines were moved, lien waivers from the prior draw
Draw 3 (cosmetic and final)	Final inspection or certificate, punch list with dates, signed lead disclosure ready for the lease, insurance binder showing rental coverage

The lien waivers matter as much as the photos. A missing waiver from the prior draw is the most common reason a draw sits for days. Missing paperwork, not missing work, is what usually pushes a BRRRR timeline past the bridge term.

South Carolina landlord basics for the hold

The hold runs under the South Carolina Residential Landlord and Tenant Act. Two provisions affect a BRRRR sponsor directly:

Deposit returns. Under § 27-40-410, deductions from a security deposit must be itemized in writing within 30 days after the tenancy ends and possession is returned, or after the tenant’s demand, whichever is later.
Selling with a tenant. A landlord who sells stays liable for the deposit unless it is transferred to the buyer and the tenant is notified in writing.

Neither rule changes the refi math. Both show up in the lease file a DSCR lender reviews, and both matter if the sponsor later sells this house with the tenant in place. For more Upstate context, see hard money loans in Nicholtown and the South Carolina vs North Carolina BRRRR comparison.