Deal snapshot
| Location | Naperville, Illinois (Will County parcel) |
| Property type | South Naperville four-bedroom SFR (District 204 feeder) |
| Loan type | Hard money bridge → DSCR no-seasoning cash-out |
| Loan amount | $306,900 bridge (90% LTC) |
| Close time | 8 business days |
Investor challenge
A collar-county sponsor recycling capital through three BRRRR deals per year bought a dated South Naperville four-bedroom in a District 204 feeder path. The property needed $68,000 in kitchen, bath, and systems updates before it would lease to corporate transferees. A conventional bank required six to twelve months of seasoning on purchase price before lending against the renovated appraisal — dead time that would have killed the sponsor’s Q3 acquisition pipeline.
Jaken Finance Group’s solution
90% LTC at 9.85% IO with 12-month term and draws tied to Naperville DPU inspection milestones — roof replacement, kitchen rough-in, final CO. Exit was pre-underwritten to no-seasoning DSCR cash-out at 75% LTV with RLTO-free expense modeling from day one.
Outcome
Market rent at stabilization: $3,450/mo
Appraised value at refi: $478,000
DSCR cash-out: 75% LTV → $358,500 @ 7.95% — recovering all acquisition equity and ~$48,000 of rehab capital for the next Will County file
Collar hub: DSCR loans Chicago · hard money lenders Naperville
Acquisition
Purchase: $342,000 · Day 8 close
Hard money: 90% LTC · 9.85% IO · 12-month term
Rehab scope
| Item | Cost |
|---|---|
| Kitchen + primary bath remodel | $32,000 |
| Hall bath + LVP main level | $14,500 |
| Roof replacement (8-year remaining at buy) | $12,500 |
| HVAC service + electrical panel | $9,000 |
Total rehab: $68,000 · All-in: $410,000
Hold exit (executed)
- Gross rent: $3,450/mo (corporate lease, 14-month term)
- Appraisal: $478,000 (renovated 4-bed comps, 204 district)
- DSCR refi: 75% LTV → $358,500 @ 7.95%
- DSCR ratio: 1.22 at standard Illinois opex (no RLTO drag)
Why Naperville beat a Chicago two-flat for this sponsor
The same capital deployed in a Chicago RLTO two-flat would have carried $150–$250/door compliance overhead and tighter DSCR at equivalent LTV. Naperville’s school-driven rental demand and RLTO-free hold math produced a 1.22 DSCR — enough to recycle capital in under two months post-lease without selling the asset.
Takeaway for collar investors: no-seasoning DSCR is the recycle engine — but only when rehab pushes rent and appraisal past the ratio your lender underwrites. Naperville finish quality must match district premium; skimping on kitchens destroys refi leverage.
No-seasoning refi calendar (52 days post-lease)
| Day | Action |
|---|---|
| 0 | Corporate tenant lease executed ($3,450/mo) |
| 3 | 1007 rent schedule ordered |
| 10 | Appraisal — 204 district renovated 4-bed comps only |
| 18 | Underwriting + LLC vesting |
| 52 | DSCR cash-out at 75% LTV; hard money retired |
No 6-month wait on $342K purchase price — permanent debt sized to $478K as-repaired appraisal.
District 204 vs 203 — why south Naperville
Sponsor targeted Will County / District 204 for basis — north Naperville 203 four-beds trade $30K–$50K higher with similar rent on this scope. Hard money Naperville page South Naperville SFR flip uses $467K/$655K resale math — different file (flip exit, DuPage-side premium).
| Corridor | This BRRRR hold | HM page flip example |
|---|---|---|
| Buy | $342,000 | $467,000 |
| Rehab | $68,000 | $92,000 |
| Exit | DSCR $478K appraised | Sale $649,900 |
| Hold period | 52 days post-lease to refi | 26 DOM resale |
Naperville DPU and draw alignment
Roof replacement triggered DPU exterior inspection before interior draws resumed — 12-day weather delay in March. Draws tied to rough electrical, kitchen rough, and final — not calendar monthly releases.
Chicago two-flat comparison on same equity
Deploying ~$75K cash-in on a Chicago RLTO two-flat modeled 1.05–1.08 DSCR at 75% LTV with $150+/door compliance load. This Naperville file cleared 1.22 with standard Illinois opex — recycle speed funded Will County duplex LOI in same quarter.
Operator lessons
Finish standard: Corporate tenant required quartz counters, SS appliances, and primary-suite walk-in — skimping would have capped rent at $3,100/mo and failed 1.15+ DSCR tier. Tax: Will County bill stress +8% at refi — collar reassessment lagged appraisal by one cycle. Lease file: 14-month corporate lease matched 1007; no month-to-month at permanent debt.
Pipeline: Sponsor closed second collar file within 45 days of refi wire using same no-seasoning DSCR playbook — collar vs city guide documents the capital rotation thesis.
Refi file checklist that cleared in one submission
Executed 14-month corporate lease, 1007 at $3,450/mo, Will County tax bill +8% stress, bound landlord policy, LLC operating agreement, hard money payoff letter, and DPU final inspection card — missing any single item adds 7–10 days on collar refis. Sponsor uploaded full package day 10 after lease start; wire day 52. No RLTO deposit rules simplified compliance vs Chicago files on the same sponsor’s pipeline.
Naperville Collar DSCR No-Seasoning BRRRR 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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