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
Sponsor takeaway
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.
Greenville Nicholtown Hard Money BRRRR to DSCR Case Study: replay checklist
Case studies illustrate one closed file — not a guarantee of future terms. Before you mirror the structure:
| Step | Action |
|---|---|
| Comps | Three solds within 0.5 mi on matching bed/bath and product type |
| Carry | Model 8.99%–13.5% IO bridge and 5.75%–10.5% DSCR exit with investor tax and insurance |
| Entity | LLC vesting, operating agreement, and EIN aligned before appraisal |
| Exit | Written takeout path — DSCR refi, sale, or wholesale — before increasing rehab scope |
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