Bridgeport is where Chicago yield-on-cost investors DSCR hold after BRRRR — lower basis than North Side corridors means $2,600/mo gross often clears coverage where Logan Square needs $3,800/mo on higher PITIA. 60609 and 60608 zip codes anchor the south-side thesis: Sox/UIC spillover demand, Section 8 depth, and brick two-flat stock at $220K–$290K distressed entry.
Acquisition: hard money Bridgeport at 8.99%–13.5% · Hub: DSCR loans Chicago · Case study: Bridgeport two-flat BRRRR
Bridgeport DSCR thesis — basis beats premium rent
Bridgeport renovated multifamily trades lower gross rent for stronger yield-on-cost — the permanent-debt exit that converts a rehabbed two-flat into portfolio equity without W-2 qualification.
| Asset | 2026 stabilized gross | Appraised value | DSCR at 70–75% LTV |
|---|---|---|---|
| Two-flat (heavy rehab) | $2,200–$2,700/mo | $380K–$430K | 1.05–1.18 |
| Two-flat (light cosmetic) | $2,500–$3,100/mo | $400K–$460K | 1.08–1.22 |
| Three-flat (select) | $3,800–$4,600/mo | $520K–$580K | 1.10–1.25 |
Parent hub: DSCR loans Chicago · DSCR Chicago multi-family
No-seasoning refi timeline — Bridgeport two-flat
Typical 60–90 day path from last unit leased to DSCR wire:
| Week | Milestone |
|---|---|
| 0 | Both units leased; executed leases uploaded |
| 1–2 | 1007 rent schedule ordered; tax reassessment estimate run |
| 2–3 | Appraisal — comps within 4 blocks, renovated only, 60609/60608 |
| 3–4 | Underwriting + LLC vesting review |
| 4–6 | Close at 70–75% LTV; hard money retired |
Seasoning trap: Banks wait 6–12 months on purchase price. No-seasoning DSCR underwrites as-repaired appraised value — the recycle engine for Bridgeport portfolio builders scaling past agency limits.
Jaken Finance Group Bridgeport DSCR parameters (2026)
- Rates: 5.75%–10.5% · Leverage: up to 75% LTV cash-out
- DSCR minimum: 1.0+; 1.15+ for best pricing
- Entity: LLC standard · Timeline: 7–14 business days with clean file
Model with DSCR calculator.
Worked example: 33rd Street two-flat DSCR exit
Note: This is a DSCR refi file only — acquisition bridge math lives on the Bridgeport hard money page.
Property: Brick side-by-side two-flat on 33rd Street — both units vacant post-rehab, CO cleared month 6.
- All-in: $248K purchase + $92K rehab = $340K before carry
- Stabilized rents: $1,450/mo (3BR upper) + $1,300/mo (2BR lower) = $2,750/mo gross
- Appraised value at refi: $415,000 — comps restricted to renovated Bridgeport two-flats, not Pilsen or Back of the Yards
- Property tax (stress-tested): $620/mo post-reassessment (+15% vs seller bill)
- Modeled opex: 32% (RLTO compliance, insurance, 6% vacancy, management)
- DSCR refi at 73% LTV: $302,950 @ 8.45%
- DSCR ratio: ~1.12 — clears refi; sponsor recycled most equity via cash-out Chicago
Why 73% LTV not 75%: South-side blocks with pending reassessment receive 2% LTV haircut when tax bill lags appraisal — we stress tax at post-close assessed value before term sheet.
Full narrative: Bridgeport case study
Cook County tax line — most common refi miss
Appraisers support $415K value; tax bill still shows pre-rehab assessed value until triennial cycle catches up. Underwriters model tax at post-renovation assessment — if you use seller’s $520/mo tax in pro forma but underwriter uses $620/mo, DSCR drops 0.06–0.10. Pull Cook County assessor data before submitting refi intent.
RLTO and lease file requirements
Bridgeport is full RLTO territory — budget $150–$220/door compliance in opex:
- Security deposit in separate Illinois FDIC account with receipt
- Heat obligations if landlord-paid — model $1,400–$2,400/unit/winter in opex
- Executed leases matching 1007 market rent — not prior tenant’s below-market rollover
- RLTO registration before lease execution
See Chicago RLTO compliance guide.
Comp discipline — 60609 vs corridor spillover
Bridgeport DSCR files fail when sponsors comp Pilsen or McKinley Park rent onto 60609 appraisals — or vice versa. Underwriters size permanent debt to the subject block, not corridor medians.
| Block type | Typical refi appraisal | Achievable gross | Common LTV cap | Ratio band |
|---|---|---|---|---|
| Interior (33rd/35th side streets) | $380K–$430K | $2,200–$2,700/mo | 73–75% | 1.05–1.15 |
| Halsted adjacency (≤1 block) | $400K–$460K | $2,500–$3,100/mo | 70–73% | 1.08–1.18 |
| Three-flat (Archer corridor) | $520K–$580K | $3,800–$4,600/mo | 70–72% | 1.10–1.22 |
UIC/Sox spillover: Blocks within 0.5 miles of Guaranteed Rate Field command $100–$175/mo premium per unit on renovated two-flats — but also attract slightly higher acquisition basis. Model both in the DSCR exit before you offer.
Section 8 optional lane
Stable HAP-backed rent can support DSCR when documented — Bridgeport’s 60609 zip has deep voucher demand. Bring 12-month payment history, lease addendum, and CHA inspection records. See Section 8 Chicago DSCR guide.
Inherited RLTO tenant — turnover refi scenario
When one unit inherits a below-market RLTO tenant at acquisition, permanent debt timing splits into two paths:
Path A — hold both units, refi on in-place rent: Underwriter uses actual leases, not 1007 market rent. A $1,200/mo RLTO upper plus $1,300/mo market lower on a $400K appraisal often clears only 68–70% LTV.
Path B — turnover upper, then refi: RLTO notice, turnover, and re-lease add 60–120 days but unlock 1007 market rent on both units. A $415K appraisal with $2,750/mo gross (Path B) vs $2,500/mo (Path A) is the difference between 73% LTV clearing and a failed refi file.
Bridgeport DSCR risks
| Risk | Mitigation |
|---|---|
| Over-improvement | Comp within four blocks — not Logan Square finish on Bridgeport appraisal |
| Open DOB violations | Clear via Chicago DOB before appraisal |
| Tax reassessment lag | Stress +15% — tax guide |
| Water lien | Chicago water cert at title |
| Section 8 inspection delay | Schedule CHA inspection before refi order if HAP income supports ratio |
60609 gentrification spillover from Pilsen raises rent ceilings — but basis on Halsted-adjacent blocks leaves thin cushion if you over-improve beyond neighborhood comp ceiling.
Underwriting checklist
- Executed leases + 1007 rent schedule
- CO all units · LLC docs · Insurance quote
- Tax stress +15% from Cook County assessor
- Hard money payoff statement
- Scope summary if no-seasoning file
- RLTO registration + security deposit receipts
- Section 8 documentation if HAP income in file
Related
- Hard money Bridgeport
- Chicago BRRRR strategy
- DSCR Logan Square — premium rent comparison
- Cash-out refinance Chicago
Stabilized a Bridgeport two- or three-flat? Pre-qualify for DSCR refi or call (833) 264-7776.
Bridgeport DSCR — two-flat refi gates (2026)
Bridgeport files fail when Logan Square comps price south-side rent, or refi starts before RLTO turnover completes on inherited tenants.
- Worked refi: $2,750/mo gross ($1,450 + $1,300) → 73% LTV at 8.45% on $415K appraisal
- Seasoning: Select no-seasoning with appraisal + executed leases
- Yield-on-cost lane: Lower basis clears thinner gross — model vs Logan Square premium
- Bridge: Acquisition on Bridgeport hard money at 8.99%–13.5%
Underwriting anchor: Stabilized rents: $1,450/mo (3BR upper) + $1,300/mo (2BR lower) = $2,750/mo gross — refresh executed lease, insurance quote, and tax reassessment before DSCR application. DSCR 5.75%–10.5% · Chicago hub · (833) 264-7776.