This walkthrough uses Chicago as an example market — the same math and workflow apply anywhere Prop-Folio operates. See how it works in your market →
TL;DR
Chicago BRRRRs run on two loan products: hard money during acquisition + rehab, then DSCR at refinance. Expect 10–12% hard money + 2–3 points, 70–75% LTV. Expect 7.0–8.0% DSCR refi at 70–75% LTV, 30-year fixed. The full cost stack — origination, appraisal, title, carry, broker fees — typically adds 6–9% to your all-in basis on top of the loan principal.
Hard money (acquisition + rehab phase)
Typical Chicago hard money terms in 2026
- Interest rate: 10–12% interest-only, paid monthly
- Points (origination): 2–3% of loan amount, paid at closing
- LTV / LTC: 80% of purchase plus 100% of rehab, capped at 70–75% of ARV
- Term: 6–12 months (some lenders offer 18)
- Prepayment: usually no penalty after month 3
- Appraisal: $450–$650 paid by borrower
- Underwriting / processing: $750–$1,200
- Draw schedule: rehab funds released in 3–5 draws after inspection
On a $215k purchase + $80k rehab example
- Loan amount: ~$252k (80% of $215k + 100% of $80k, capped at 75% ARV)
- 2 points at closing: $5,040
- Interest-only monthly: ~$2,310 at 11%
- 6-month carry: ~$13,860 interest + $5,040 points = $18,900 in cost-of-capital
- Add appraisal $550 + UW $900 + title $2,500 + recording $250 = ~$4,200 more in soft costs
DSCR refinance (stabilization phase)
Typical Chicago DSCR refi terms in 2026
- Interest rate: 7.0–8.0% for 1.25 DSCR coverage
- LTV: 70–75% of as-stabilized appraised value
- Term: 30-year fixed (or 5/7/10 ARMs)
- Origination: 1–2 points
- Prepayment: 3-2-1 or 5-4-3-2-1 step-down typical
- DSCR minimum: 1.20–1.25 (NOI / annual debt service)
- Closing costs: $4,000–$7,000 typically
Refinance on the same $215k + $80k example
- Refi loan: 75% of $385k ARV = $288,750
- 1.5 points: ~$4,330
- Title + escrow + appraisal: ~$3,500
- Net proceeds after paying off hard money ($252k): ~$36,750 to cover acquisition costs + carry
- Cash left in deal: ~$23k (≈ 7.4% of total basis)
How to plug this into Prop-Folio
- Purchase card → enter hard money rate, points, and LTV
- Renovation tab → builds the rehab estimate that drives the hard money draw schedule
- Refinance card → enter DSCR rate, LTV, amortization, closing costs
- App computes Cash Left In, Recouped %, and post-refi cash flow automatically
Related: Chicago BRRRR underwriting · Bronzeville BRRRR walkthrough · Cap rate, CoC, DSCR explained