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’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.
Related
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