Property: 3-unit brownstone, Bronzeville (60615). 1900-built brick, 4,200 sqft, three 2 bed / 1 bath units. Off-market acquisition through a local wholesaler.
Outcome: Purchase $215k → rehab $82k → ARV $385k → 75% LTV refi pulls $289k → cash left in deal $28k → monthly cash flow $1,140 across all three units. PropScore 4.1.
Why Bronzeville
Bronzeville sits between the Loop and Hyde Park, has solid bones in its vintage 3-flat stock, and benefits from the South Side rebound story. Rents have moved up materially in the last five years for renovated units. ARVs on quality renovations hold in the $370–$420k range for 3-flats, depending on block and finish level.
Purchase + acquisition financing
- Purchase price: $215,000
- Closing costs: $5,400 (~2.5%)
- Hard money loan: $172,000 (80% LTV), 11% interest-only, 2 points
- Down payment + closing out-of-pocket: $51,840
- Carry cost (6-month rehab + season period): ~$9,500
The renovation budget
This was a full mid-tier rehab. The 3-flat had original mechanicals (one boiler from the 70s), galvanized supply lines that needed swap-out, two units that needed full kitchen/bath updates, and one unit with usable existing finishes that we lightly refreshed.
- Kitchens (2 full, 1 refresh): $24,000
- Bathrooms (2 full, 1 refresh): $13,500
- Refinish hardwoods + paint (all 3 units): $11,000
- Electrical update + panel + can lights: $9,500
- New furnace + water heaters (3): $7,500
- Plumbing repipe + minor sewer: $8,000
- Permits + misc + 8% contingency: $8,500
- Total rehab: $82,000
Stabilized rents
RentCast comps for renovated 2 bed / 1 bath units in 60615 came back at $1,650 average. We listed all three at $1,675 and leased two within 21 days, the third within 38 days. Stabilized gross rent: $5,025/month.
Operating expense stack
- Property tax (post-rehab assessment estimate): $7,800/yr
- Insurance: $2,650/yr
- Vacancy reserve (7%): $4,221/yr
- Repairs & maintenance (8%): $4,824/yr
- CapEx reserve (6%): $3,618/yr
- Property management (self-managed → $0): $0
- Total operating expenses: $23,113/yr (~$1,926/mo)
The refinance
- Appraised value (ARV): $385,000
- Refi LTV: 75%
- Refi proceeds: $288,750
- Refi rate: 7.25% DSCR, 30-year fixed
- New monthly PITI: $1,958
The result
- All-in basis (purchase + rehab + carry + closing): $311,900
- Refi loan covers: $288,750
- Cash left in deal: $23,150 (~7.4% of basis)
- Recouped %: 92.6%
- Post-refi monthly cash flow: $1,141 ($5,025 rent − $1,958 PITI − $1,926 OPEX)
- Cash-on-cash return on remaining $23k: ~59%
- Deal Score: 78
What we'd do differently
Negotiate harder on the hard money
11% + 2 points was the going rate from our lender in this window. Shopping three lenders would have likely shaved 50 bps. Over the 6-month carry, that's roughly $1,400 saved.
Get the appraisal pre-quoted
Our refi appraisal came in $15k below our underwriting. We modeled ARV at $400k but appraisal landed at $385k. Quoting two appraisers ahead of time would have de-risked this.
Push for the higher rent
We left $25–$50/unit on the table by underpricing the listings. A small thing per month, but $900/yr per unit compounds across a portfolio.
Run your own deal
Every number above is wired into the BRRRR calculator in Prop-Folio. Type the address, switch to BRRRR strategy, plug your purchase + rehab + refi assumptions, and the app gives you the same line-by-line breakdown and Deal Score.
Have a Bronzeville deal to underwrite? Send us your numbers — we'll walk through it with you.
Related: How to underwrite a Chicago BRRRR in under 5 minutes · What is a Deal Score?