12957 Shannon Hills Dr, Houston, TX 77099
2bd / 2ba · 1,216 sqft · built 1980 · Single Family (SFR)Analyzed May 13, 2026$
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Scenario 1 — Flip
Hard money loan · sell at ARV after rehab
❌
FAILS FLIP
Min 20% ROI · 6-mo hold
-22.4%
Flip ROI
Cash to First Close
$12,000
what you bring day 1
Net Profit
−$5,383
Max Bid @ 20%
$87,405
−$5,383 profit ÷ $24,028 total invested = -22.4%
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$125,250
Purchase (95% LTV)
$90,250
Rehab (100%)
$35,000
Loan-to-ARV
78.8%
Monthly Interest
$1,043/mo
Down Payment5% of $95,000 purchase
$4,750+
Origination Fee1 pts on $125,250 loan
$2,500+
Closing Costs5% of purchase
$4,750=
Cash to First Close
$12,000Holding Period — 6 Months
HML Interest9.99% IO · $1,043/mo × 6$6,256
Property Taxes$270/mo × 6$1,622
Insurance$108/mo × 6$650
Total Holding Costs$8,528
Contingency Reserve10% of rehab — held, not at first close$3,500
Sale Event — Second Close
Sale Price (ARV)
$159,000−
HML Principal Payofffull IO loan balance
$125,250−
Closing Costs3.5% of sale price
$5,565−
Realtor Commission6% of sale price
$9,540=
Net Proceeds to You
$18,645Deal Summary
Net Proceeds at Closing
$18,645−
Cash to First Close
$12,000−
Holding Costs (6 mo)
$8,528−
Contingency Reserve
$3,500=
NET PROFIT
−$5,383Max Bid by ROI Target
| ROI | Max Bid | vs Offer |
|---|---|---|
| 10% | $89,315 | −$5,685 |
| 15% | $88,353 | −$6,647 |
| 20% ← | $87,405 | −$7,595 |
| 25% | $86,470 | −$8,530 |
| 30% | $85,548 | −$9,452 |
Scenario 2 — HM→DSCR
Hard money @ 9.99% IO → DSCR refi · 75% ARV · 7.1% / 30yr
❌
FAILS DSCR
Min 1.30x · 7.1% / 30-yr DSCR · 75% of ARV
0.900x
DSCR
Monthly Cash Flow
−$80/mo
Cash-on-Cash Yr 1
-3.4%
$27,920 left in deal
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$125,250
Purchase (95% LTV)
$90,250
Rehab (100%)
$35,000
Loan-to-ARV
78.8%
Monthly Interest
$1,043/mo
Down Payment5% of $95,000 purchase
$4,750+
Origination Fee1 pts on $125,250 loan
$2,500+
Closing Costs5% of purchase
$4,750=
Cash to First Close
$12,000Holding Period — 2 Months
HML Interest9.99% IO · $1,043/mo × 2$2,085
Property Taxes$270/mo × 2$541
Insurance$108/mo × 2$217
Total Holding Costs$2,843
Contingency Reserve10% of rehab — held, not at first close$3,500
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$119,250−
HML Principal Payofffull IO loan balance
$125,250−
Origination Fee1 pts on $119,250
$1,193−
Closing Coststitle / appraisal / escrow
$2,385=
Cash to Bring to Close
−$9,578Deal Summary
Cash to First Close
$12,000+
Holding Costs (2 mo)
$2,843+
Contingency Reserve
$3,500−
Cash to Bring at Refi
+$9,578=
Capital Left in Deal
$27,920Equity Position — Day 1 Post-Refi
ARV
$159,000−
DSCR Loan Balance
$119,250=
Equity in Property
$39,750 (25.0%)−
Capital Left in Deal
$27,920=
Value Created
$11,830$39,750 equity on $27,920 deployed = 1.4× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$1,250−
Property Taxes
$270−
Insurance
$108−
Maintenance (6% rent)
$75−
Management (6% rent)
$75=
OpEx Subtotal
$529=
Net Operating Income
$721−
DSCR P&I
$801/mo=
Net Cash Flow
−$80/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$119,250
Monthly P&I$801/mo
Net Cash Flow−$80/mo
Cash Still Required−$9,578
DSCR
0.900x✗ Fail
Lender DSCR
1.059x✓ Pass
No Cash-Out
75.0% LTV — capped short $9,578
Loan Amount$119,250
Monthly P&I$801/mo
Net Cash Flow−$80/mo
Cash Still Required−$9,578
DSCR
0.900x✗ Fail
Lender DSCR
1.059x✓ Pass
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $1,341/mo | +$91 needed |
| 1.10x | $1,432/mo | +$182 needed |
| 1.20x | $1,523/mo | +$273 needed |
| 1.30x ← | $1,614/mo | +$364 needed |
| 1.40x | $1,705/mo | +$455 needed |
Scenario 3 — Cash→DSCR
All-cash purchase → DSCR refi · 75% ARV · 7.1% / 30yr
❌
FAILS DSCR
Min 1.30x · 7.1% / 30-yr DSCR · 75% of ARV
0.900x
DSCR
Monthly Cash Flow
−$80/mo
Cash-on-Cash Yr 1
-4.1%
$23,335 left in deal
Acquisition Event — First Close
Purchase Price
$95,000+
Rehab Budget
$35,000+
Closing Costs5% of purchase
$4,750=
Total Cash to First Close
$134,750Holding Period — 2 Months
Property Taxes$270/mo × 2$541
Insurance$108/mo × 2$217
Total Holding Costs$757
Contingency Reserve10% of rehab — held, not at first close$3,500
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$119,250−
Origination Fee1 pts on $119,250
$1,193−
Closing Coststitle / appraisal / escrow
$2,385=
Net Cash Recovered
$115,673Deal Summary
Total Cash to First Close
$134,750+
Holding Costs (2 mo)
$757+
Contingency Reserve
$3,500−
Net Cash Recovered at Refi
$115,673=
Capital Left in Deal
$23,335Equity Position — Day 1 Post-Refi
ARV
$159,000−
DSCR Loan Balance
$119,250=
Equity in Property
$39,750 (25.0%)−
Capital Left in Deal
$23,335=
Value Created
$16,415$39,750 equity on $23,335 deployed = 1.7× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$1,250−
Property Taxes
$270−
Insurance
$108−
Maintenance (6% rent)
$75−
Management (6% rent)
$75=
OpEx Subtotal
$529=
Net Operating Income
$721−
DSCR P&I
$801/mo=
Net Cash Flow
−$80/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$119,250
Monthly P&I$801/mo
Net Cash Flow−$80/mo
Cash Still Required−$23,335
DSCR
0.900x✗ Fail
Lender DSCR
1.059x✓ Pass
No Cash-Out
75.0% LTV — capped short $23,335
Loan Amount$119,250
Monthly P&I$801/mo
Net Cash Flow−$80/mo
Cash Still Required−$23,335
DSCR
0.900x✗ Fail
Lender DSCR
1.059x✓ Pass
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $1,341/mo | +$91 needed |
| 1.10x | $1,432/mo | +$182 needed |
| 1.20x | $1,523/mo | +$273 needed |
| 1.30x ← | $1,614/mo | +$364 needed |
| 1.40x | $1,705/mo | +$455 needed |