South Shore is Chicago’s lakefront south — Jackson Park, Metra Electric access, and vintage multifamily at lower basis per door than Logan Square. DSCR loans in South Shore fund permanent debt after repositioning — converting 12–18 months of hard money carry into long-term rental debt.
Acquisition bridge: hard money loans South Shore · Jeffery three-flat acquisition example on that page — this page uses a six-flat refi file.
South Shore DSCR by asset class (2026)
| Asset | Stabilized gross | Appraised value | DSCR at 70–72% LTV |
|---|---|---|---|
| Two-flat (interior) | $2,000–$2,700/mo | $310K–$380K | 1.05–1.15 |
| Three-flat (renovated) | $3,600–$4,800/mo | $480K–$560K | 1.10–1.25 |
| 6-flat courtyard | $7,500–$11,000/mo | $850K–$1.2M | 1.14–1.28 |
Parent hub: DSCR loans Chicago
Six-flat DSCR refi — file requirements beyond duplex
South Shore courtyard six-flats need deeper diligence than two-flat refis:
| Document | Why |
|---|---|
| Full rent roll (6 units) | Partial stabilization fails ratio |
| Phase I (if prior commercial use) | Environmental delay at refi |
| Boiler plant documentation | Central systems affect opex |
| Unit-by-unit CO | Partial CO blocks permanent debt |
| 12–18 mo scope summary | No-seasoning proof of reposition |
Timeline: 14–21 business days vs 7–14 on two-flats.
No-seasoning refi on six-flat reposition
Six-flat sponsors on 14-month hard money depend on no-seasoning DSCR — permanent debt sized to $972K appraised, not $628K purchase. Underwriters require draw history, scope summary, and lease commencement dates for all six units — partial stabilization fails ratio even when five units perform.
Jaken Finance Group South Shore DSCR parameters
- Rates: 7.75%–10.75% · LTV: up to 75% (70–72% common on six-flats)
- DSCR minimum: 1.0+; 1.15+ on larger assets for best tier
- No-seasoning: select programs post full stabilization
Worked example: 75th Street courtyard six-flat DSCR exit
Property: 1920s six-flat on interior street north of 75th — acquired distressed, 4 units vacant, 2 occupied (RLTO transition completed months 1–3).
Bridge (closed prior): $628,000 acquisition + $236,000 reposition — unit-by-unit kitchen/bath, boiler replacement, roof, tuckpointing Timeline: 14-month reposition including tenant transitions Stabilized gross: $1,425/mo × 6 units = $8,550/mo (mix of 2BR and 3BR) Appraised value: $972,000 Modeled opex: 34% (RLTO, lakefront insurance premium, 7% vacancy, management) DSCR refi at 70% LTV: $680,400 @ 8.75% DSCR ratio: 1.17 — returns ~$140K equity after bridge payoff for second south-side acquisition
Block diligence: Comps drawn quarter-mile radius on renovated six-units — not South Shore Drive co-op sales.
Two-flat refi profile (interior streets)
Modest $240K all-in two-flats grossing $2,450/mo often refi at 74% LTV on $355K appraisal → 1.08 DSCR — viable for first south-side hold exit with 33% opex load. Lower equity extract than six-flat but faster 7–10 day refi timeline.
Metra Electric and employer anchors
Metra Electric at 75th–79th supports UIC and downtown commuter tenant pool on interior streets — not lakefront co-op tenants. Comp leased renovated units on Jeffery and Coles corridors; University of Chicago spillover from Hyde Park affects 71st–75th micro-markets only when block stability supports it.
Jackson Park vs South Shore Drive — comp confusion at refi
Appraisers and sponsors routinely mix lakefront co-op sales with interior rental multifamily comps — producing refi surprises on six-flat files.
| Comp source | Use for DSCR refi? | Why |
|---|---|---|
| Interior courtyard six-flat (Jeffery/Coles) | Yes | Matches rental income approach |
| South Shore Drive co-op resale | No | O-O ownership, fee structure differs |
| Hyde Park condo sales | No | Different tenant pool and basis |
| Renovated two-flat (71st–75th interior) | Yes (smaller assets) | Same rental exit buyer |
Rule: Pull leased renovated multifamily within 0.25–0.5 mi on the same block character — not lakefront envelope sales with $400+/mo HOA lines that rental six-flats do not carry.
Six-flat RLTO transition — stabilization calendar
When two or more units arrive occupied at acquisition, RLTO governs turnover before those units count at 1007 market rent:
| Month | Action | Refi impact |
|---|---|---|
| 1–2 | RLTO notice on occupied units; begin vacant unit rehab | Only vacant units lease at market |
| 3–5 | Complete vacant units; partial rent roll | Ratio sized to partial gross |
| 6–8 | Turnover occupied units per RLTO timeline | Full rent roll eligible |
| 9+ | 1007 ordered; appraisal with 6-unit lease file | No-seasoning refi window opens |
The 75th Street six-flat in the worked example completed RLTO transitions in months 1–3 on two units while repositioning four vacant sides — 14-month total timeline is normal, not exceptional. Hard money terms must cover RLTO delay + reposition, not cosmetic flip calendars.
South Shore DSCR risks
Block-level diligence — walk at day and evening; comp renovated only. Lakefront envelope — roof/parapet deferred maintenance tightens LTV. RLTO relocation on occupied units delays stabilization. Speculative premium trap — do not model Presidential Center rent growth into ratio.
Underwriting checklist
- Rent roll + leases all units · CO each unit
- LLC docs · Tax +15% stress · Insurance (multifamily + lakefront)
- Hard money payoff · Scope/reposition summary
Insurance and lakefront peril on refi
South Shore six-flats near South Shore Drive carry higher property insurance quotes than interior streets — underwriters apply $180–$250/mo premium delta vs Jeffery corridor comps. Missing insurance bind at refi adds 7–10 days to close.
Related
South Shore DSCR — RLTO turnover gates (2026)
South Shore refi fails when in-place RLTO rent substitutes for post-turnover market rent — 0.06–0.10 DSCR swing; lakefront envelope tightens LTV until roof/parapet documented.
- Two-flat: $2,450/mo on $355K → 74% LTV ~1.08 DSCR
- Six-flat: $8,550/mo courtyard → 70% LTV ~1.17 — Phase I when warranted
- Insurance: South Shore Drive $180–$250/mo premium vs interior streets
- Path B: Turnover adds 60–120 days but unlocks 73% vs 68% LTV
Underwriting anchor: replay the DSCR math and worked example on this page with your own lease, tax, and insurance inputs before application. DSCR 5.75%–10.5% · Chicago hub · (833) 264-7776.
Stabilized South Shore multifamily? Pre-qualify for DSCR refi or call (833) 264-7776.