MMX Group/15822 Herongate Dr, Houston, TX 77084
Flip-96.9%
HM→DSCR0.928x
Cash→DSCR0.928x
New Deal

15822 Herongate Dr, Houston, TX 77084

3bd / 2ba · 1,858 sqft · built 1977 · Single Family (SFR)Analyzed Jun 27, 2026
Flip ROI
-96.9%
FAIL
−$38,893 loss
6-mo hold · profit ÷ cash out
DSCR — 75% LTV
0.928x
FAIL
cash-out refi · NOI / debt service
DSCR — No Cash-Out
0.928x
FAIL
75.0% LTV · capped, short $42,262
Max Bid @ 20%
$149,310
FAIL
✗ $40,689 over max
Total Invested
$30,373
down + points + costs + holding, pre-refi
Cash Left in Deal
$72,634
after HM → DSCR cash-out refi
Value Generated
$15,001
ARV − purchase − rehab (instant equity)
Starting Equity %
25.0%
ARV − DSCR loan ÷ ARV, day 1 post-refi
$
$
$
$
$
$
Scenario 1 — Flip
Hard money loan · sell at ARV after rehab
FAILS FLIP
Min 20% ROI · 6-mo hold
-96.9%
Flip ROI
Cash to First Close
$21,500
what you bring day 1
Net Profit
−$38,893
Max Bid @ 20%
$149,310
−$38,893 profit  ÷  $40,119 total invested  =  -96.9%
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$220,499
Purchase (95% LTV)
$180,499
Rehab (100%)
$40,000
Loan-to-ARV
90.0%
Monthly Interest
$1,836/mo
Down Payment5% of $189,999 purchase
$9,500
+
Origination Fee1 pts on $220,499 loan
$2,500
+
Closing Costs5% of purchase
$9,500
=
Cash to First Close
$21,500
Holding Period — 6 Months
HML Interest9.99% IO · $1,836/mo × 6$11,014
Property Taxes$409/mo × 6$2,455
Insurance$192/mo × 6$1,150
Total Holding Costs$14,619
Contingency Reserve10% of rehab — held, not at first close$4,000
Sale Event — Second Close
Sale Price (ARV)
$245,000
HML Principal Payofffull IO loan balance
$220,499
Closing Costs3.5% of sale price
$8,575
Realtor Commission6% of sale price
$14,700
=
Net Proceeds to You
$1,226
Deal Summary
Net Proceeds at Closing
$1,226
Cash to First Close
$21,500
Holding Costs (6 mo)
$14,619
Contingency Reserve
$4,000
=
NET PROFIT
−$38,893
Max Bid by ROI Target
ROIMax Bidvs Offer
10%$152,256−$37,743
15%$150,772−$39,227
20%$149,310−$40,689
25%$147,868−$42,131
30%$146,446−$43,553
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
0.928x
DSCR
Monthly Cash Flow
−$89/mo
Cash-on-Cash Yr 1
-1.5%
$72,634 left in deal
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$220,499
Purchase (95% LTV)
$180,499
Rehab (100%)
$40,000
Loan-to-ARV
90.0%
Monthly Interest
$1,836/mo
Down Payment5% of $189,999 purchase
$9,500
+
Origination Fee1 pts on $220,499 loan
$2,500
+
Closing Costs5% of purchase
$9,500
=
Cash to First Close
$21,500
Holding Period — 2 Months
HML Interest9.99% IO · $1,836/mo × 2$3,671
Property Taxes$409/mo × 2$818
Insurance$192/mo × 2$383
Total Holding Costs$4,873
Contingency Reserve10% of rehab — held, not at first close$4,000
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$183,750
HML Principal Payofffull IO loan balance
$220,499
Origination Fee1 pts on $183,750
$1,838
Closing Coststitle / appraisal / escrow
$3,675
=
Cash to Bring to Close
−$42,262
Deal Summary
Cash to First Close
$21,500
+
Holding Costs (2 mo)
$4,873
+
Contingency Reserve
$4,000
Cash to Bring at Refi
+$42,262
=
Capital Left in Deal
$72,634
Equity Position — Day 1 Post-Refi
ARV
$245,000
DSCR Loan Balance
$183,750
=
Equity in Property
$61,250 (25.0%)
Capital Left in Deal
$72,634
=
Value Created
−$11,384
$61,250 equity on $72,634 deployed = 0.8× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$1,985
Property Taxes
$409
Insurance
$192
Maintenance (6% rent)
$119
Management (6% rent)
$119
=
OpEx Subtotal
$839
=
Net Operating Income
$1,146
DSCR P&I
$1,235/mo
=
Net Cash Flow
−$89/mo
DSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$183,750
Monthly P&I$1,235/mo
Net Cash Flow−$89/mo
Cash Still Required−$42,262
DSCR
0.928x✗ Fail
Lender DSCR
1.081x✓ Pass
No Cash-Out
75.0% LTV — capped short $42,262
Loan Amount$183,750
Monthly P&I$1,235/mo
Net Cash Flow−$89/mo
Cash Still Required−$42,262
DSCR
0.928x✗ Fail
Lender DSCR
1.081x✓ Pass
Required Rent by DSCR Target
TargetRent Neededvs Current
1.00x$2,086/mo+$101 needed
1.10x$2,226/mo+$241 needed
1.20x$2,367/mo+$382 needed
1.30x$2,507/mo+$522 needed
1.40x$2,647/mo+$662 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
0.928x
DSCR
Monthly Cash Flow
−$89/mo
Cash-on-Cash Yr 1
-1.6%
$66,463 left in deal
Acquisition Event — First Close
Purchase Price
$189,999
+
Rehab Budget
$40,000
+
Closing Costs5% of purchase
$9,500
=
Total Cash to First Close
$239,499
Holding Period — 2 Months
Property Taxes$409/mo × 2$818
Insurance$192/mo × 2$383
Total Holding Costs$1,202
Contingency Reserve10% of rehab — held, not at first close$4,000
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$183,750
Origination Fee1 pts on $183,750
$1,838
Closing Coststitle / appraisal / escrow
$3,675
=
Net Cash Recovered
$178,238
Deal Summary
Total Cash to First Close
$239,499
+
Holding Costs (2 mo)
$1,202
+
Contingency Reserve
$4,000
Net Cash Recovered at Refi
$178,238
=
Capital Left in Deal
$66,463
Equity Position — Day 1 Post-Refi
ARV
$245,000
DSCR Loan Balance
$183,750
=
Equity in Property
$61,250 (25.0%)
Capital Left in Deal
$66,463
=
Value Created
−$5,213
$61,250 equity on $66,463 deployed = 0.9× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$1,985
Property Taxes
$409
Insurance
$192
Maintenance (6% rent)
$119
Management (6% rent)
$119
=
OpEx Subtotal
$839
=
Net Operating Income
$1,146
DSCR P&I
$1,235/mo
=
Net Cash Flow
−$89/mo
DSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$183,750
Monthly P&I$1,235/mo
Net Cash Flow−$89/mo
Cash Still Required−$66,463
DSCR
0.928x✗ Fail
Lender DSCR
1.081x✓ Pass
No Cash-Out
75.0% LTV — capped short $66,463
Loan Amount$183,750
Monthly P&I$1,235/mo
Net Cash Flow−$89/mo
Cash Still Required−$66,463
DSCR
0.928x✗ Fail
Lender DSCR
1.081x✓ Pass
Required Rent by DSCR Target
TargetRent Neededvs Current
1.00x$2,086/mo+$101 needed
1.10x$2,226/mo+$241 needed
1.20x$2,367/mo+$382 needed
1.30x$2,507/mo+$522 needed
1.40x$2,647/mo+$662 needed
30-Year Hold Projection
Click to expand
DSCR loan $183,750 @ 7.1% · 3% rent growth · Via Hard Money · Via All Cash (same DSCR loan)