Logan Square is where Chicago BRRRR investors accept higher basis for higher rent ceilings — and DSCR loans in Logan Square are the permanent-debt exit that converts a rehabbed two-flat west of the 606 trail into portfolio equity without W-2 qualification.
This page covers DSCR refi only — acquisition bridge at hard money loans Logan Square · collar comparison at Chicago vs collar BRRRR guide.
Logan Square DSCR thesis — premium rents, premium friction
Logan Square (60647) renovated multifamily commands rents Bridgeport cannot match — but RLTO, DOB compliance, and triennial Cook County reassessment compress NOI if you underwrite like Naperville.
| Asset | 2026 stabilized gross | Typical appraised value | DSCR at 70–75% LTV |
|---|---|---|---|
| Two-flat (interior block) | $3,200–$4,100/mo | $480K–$560K | 1.05–1.20 |
| Two-flat (Milwaukee adjacency) | $3,600–$4,400/mo | $520K–$600K | 1.08–1.22 |
| Three-flat (full gut) | $5,400–$6,800/mo | $680K–$780K | 1.15–1.35 |
Parent hub: DSCR loans Chicago · DSCR Chicago multi-family
No-seasoning refi timeline — Logan Square 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 |
| 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 Logan Square portfolio builders.
Jaken Finance Group Logan Square 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: Fullerton side-street two-flat DSCR exit
Note: This is a DSCR refi file only — acquisition bridge math lives on the Logan Square hard money page (different property profile: Kedzie three-flat).
Property: Brick two-flat on Fullerton side street west of 606 trail — both units vacant post-rehab, CO cleared month 7.
Stabilized rents: $2,050/mo (3BR upper) + $1,800/mo (2BR lower) = $3,850/mo gross Appraised value at refi: $518,000 — comps restricted to 60647 renovated two-flats, not Lincoln Park Property tax (stress-tested): $985/mo post-reassessment (+14% vs seller bill) Modeled opex: 31% (RLTO compliance, insurance, 6% vacancy, management) DSCR refi at 73% LTV: $378,140 @ 8.45% DSCR ratio: 1.12 — clears refi; sponsor recycled ~$72K for Avondale acquisition
Why 73% LTV not 75%: Milwaukee-adjacent blocks receive 5% LTV haircut when tax reassessment lags appraisal — we stress tax at post-close assessed value before term sheet.
Cook County tax line — most common refi miss
Appraisers support $518K value; tax bill still shows 2019-era assessed value until triennial cycle catches up. Underwriters model tax at post-renovation assessment — if you use seller’s $720/mo tax in pro forma but underwriter uses $985/mo, DSCR drops 0.06–0.10. Pull Cook County assessor data before submitting refi intent.
RLTO and lease file requirements
- Security deposit in separate Illinois FDIC account with receipt
- Heat obligations if landlord-paid — model $1,400–$2,800/unit/winter in opex
- Executed leases matching 1007 market rent — not prior tenant’s below-market rollover
See Chicago RLTO compliance guide.
Milwaukee Avenue vs interior block — refi math split
Logan Square DSCR files fail when sponsors comp Milwaukee frontage rent onto interior block 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 (Fullerton/Kedzie side streets) | $480K–$540K | $3,200–$3,900/mo | 73–75% | 1.08–1.18 |
| Milwaukee adjacency (≤1 block) | $520K–$600K | $3,600–$4,400/mo | 70–73% | 1.06–1.15 |
| Three-flat (Kedzie corridor) | $680K–$780K | $5,400–$6,800/mo | 70–72% | 1.12–1.28 |
606 trail spillover: Blocks within 400 feet of the trail command $150–$250/mo premium per unit on renovated two-flats — but also attract higher acquisition basis. Model both in the DSCR exit before you offer on a trail-adjacent file.
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 $1,350/mo RLTO upper plus $1,800/mo market lower on a $485K appraisal often clears only 68–70% LTV — not the 75% modeled on full market rents. Budget $180/mo RLTO compliance in opex.
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 $518K appraisal with $3,850/mo gross (Path B) vs $3,150/mo (Path A) is the difference between 73% LTV clearing and a failed refi file.
See the illustrative Bridgeport BRRRR scenario for an illustrative payment and bridge-payoff test. Its rent and expense assumptions are not evidence of a completed refinance, tenancy status, or local ordinance treatment.
Logan Square DSCR risks
606 trail gentrification premium — rent supports ratio; basis on Milwaukee-adjacent blocks leaves thin cushion. Over-improvement — comp within four blocks. RLTO turnover on inherited tenants delays stabilization.
Underwriting checklist
- Executed leases + 1007
- CO all units · LLC docs · Insurance quote
- Tax stress +15% · Hard money payoff
- Scope summary if no-seasoning file
Related
- Hard money loans Logan Square
- illustrative Bridgeport BRRRR scenario — lower-basis comparison
- Chicago BRRRR strategy
Logan Square DSCR — two-flat refi gates (2026)
Logan Square files fail when Wicker Park comps price Milwaukee corridor rent, or refi starts before RLTO turnover completes on inherited tenants.
- Worked refi: $3,850/mo gross ($2,050 + $1,800) → 73% LTV at 8.45%
- Seasoning: Select no-seasoning with appraisal + executed leases
- Appreciation lane: Thinner yield — model hold vs collar RLTO-free exit
- Bridge: Acquisition on Logan Square hard money
Underwriting anchor: Stabilized rents: $2,050/mo (3BR upper) + $1,800/mo (2BR lower) = $3,850/mo gross — refresh executed lease, insurance quote, and tax reassessment before DSCR application. DSCR 5.75%–10.5% · Chicago hub · (833) 264-7776.
Stabilized a Logan Square two- or three-flat? Pre-qualify for DSCR refi or call (833) 264-7776.