MMX Group/202 E 38th St, Houston, TX 77018
Flip-7.3%
HM→DSCR-8.985x
Cash→DSCR-8.985x
New Deal

202 E 38th St, Houston, TX 77018

2bd / 1ba · 1,328 sqft · built 1965 · Single Family (SFR)Analyzed May 13, 2026
Flip ROI
-7.3%
FAIL
−$8,490 loss
6-mo hold · profit ÷ cash out
DSCR — 75% LTV
-8.985x
FAIL
cash-out refi · NOI / debt service
DSCR — No Cash-Out
-12.219x
FAIL
55.2% LTV · HML payoff refi
Max Bid @ 20%
$138,127
FAIL
✗ $26,873 over max
Total Invested
$51,635
down + points + costs + holding, pre-refi
Cash Out at Refi
$4,773
after HM → DSCR cash-out refi
Value Generated
$128,000
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
-7.3%
Flip ROI
Cash to First Close
$19,000
what you bring day 1
Net Profit
−$8,490
Max Bid @ 20%
$138,127
−$8,490 profit  ÷  $116,905 total invested  =  -7.3%
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$156,750
Purchase (95% LTV)
$156,750
Loan-to-ARV
53.5%
Monthly Interest
$1,305/mo
Down Payment5% of $165,000 purchase
$8,250
+
Origination Fee1 pts on $156,750 loan
$2,500
+
Closing Costs5% of purchase
$8,250
=
Cash to First Close
$19,000
Holding Period — 6 Months
HML Interest9.99% IO · $1,305/mo × 6$7,830
Property Taxes$14,875/mo × 6$89,250
Insurance$138/mo × 6$825
Total Holding Costs$97,905
Sale Event — Second Close
Sale Price (ARV)
$293,000
HML Principal Payofffull IO loan balance
$156,750
Closing Costs3.5% of sale price
$10,255
Realtor Commission6% of sale price
$17,580
=
Net Proceeds to You
$108,415
Deal Summary
Net Proceeds at Closing
$108,415
Cash to First Close
$19,000
Holding Costs (6 mo)
$97,905
=
NET PROFIT
−$8,490
Max Bid by ROI Target
ROIMax Bidvs Offer
10%$148,021−$16,979
15%$143,039−$21,961
20%$138,127−$26,873
25%$133,285−$31,715
30%$128,509−$36,491
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
-8.985x
DSCR
Monthly Cash Flow
−$14,746/mo
Cash-on-Cash Yr 1
N/A
−$4,773 left in deal
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$156,750
Purchase (95% LTV)
$156,750
Loan-to-ARV
53.5%
Monthly Interest
$1,305/mo
Down Payment5% of $165,000 purchase
$8,250
+
Origination Fee1 pts on $156,750 loan
$2,500
+
Closing Costs5% of purchase
$8,250
=
Cash to First Close
$19,000
Holding Period — 2 Months
HML Interest9.99% IO · $1,305/mo × 2$2,610
Property Taxes$14,875/mo × 2$29,750
Insurance$138/mo × 2$275
Total Holding Costs$32,635
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$219,750
HML Principal Payofffull IO loan balance
$156,750
Origination Fee1 pts on $219,750
$2,198
Closing Coststitle / appraisal / escrow
$4,395
=
Cash Back to You
+$56,408
Deal Summary
Cash to First Close
$19,000
+
Holding Costs (2 mo)
$32,635
Cash Back at Refi
−$56,408
=
Capital Left in Deal
−$4,773
Equity Position — Day 1 Post-Refi
ARV
$293,000
DSCR Loan Balance
$219,750
=
Equity in Property
$73,250 (25.0%)
Capital Left in Deal
−$4,773
=
Value Created
$78,023
Monthly Income & Expenses — Post-DSCR
Gross Rent
$1,981
Property Taxes
$14,875
Insurance
$138
Maintenance (6% rent)
$119
Management (6% rent)
$119
=
OpEx Subtotal
$15,250
=
Net Operating Income
−$13,269
DSCR P&I
$1,477/mo
=
Net Cash Flow
−$14,746/mo
DSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$219,750
Monthly P&I$1,477/mo
Net Cash Flow−$14,746/mo
Cash Back at Refi+$56,408
DSCR
-8.985x✗ Fail
Lender DSCR
0.120x✗ Fail
No Cash-Out
55.2% LTV — breakeven refi
Loan Amount$161,598
Monthly P&I$1,086/mo
Net Cash Flow−$14,355/mo
Cash Back at Refi+$0
DSCR
-12.219x✗ Fail
Lender DSCR
0.123x✗ Fail
Required Rent by DSCR Target
TargetRent Neededvs Current
1.00x$18,738/mo+$16,757 needed
1.10x$18,906/mo+$16,925 needed
1.20x$19,073/mo+$17,092 needed
1.30x$19,241/mo+$17,260 needed
1.40x$19,409/mo+$17,428 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
-8.985x
DSCR
Monthly Cash Flow
−$14,746/mo
Cash-on-Cash Yr 1
N/A
−$9,882 left in deal
Acquisition Event — First Close
Purchase Price
$165,000
+
Closing Costs5% of purchase
$8,250
=
Total Cash to First Close
$173,250
Holding Period — 2 Months
Property Taxes$14,875/mo × 2$29,750
Insurance$138/mo × 2$275
Total Holding Costs$30,025
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$219,750
Origination Fee1 pts on $219,750
$2,198
Closing Coststitle / appraisal / escrow
$4,395
=
Net Cash Recovered
$213,158
Deal Summary
Total Cash to First Close
$173,250
+
Holding Costs (2 mo)
$30,025
Net Cash Recovered at Refi
$213,158
=
Capital Left in Deal
−$9,882
Equity Position — Day 1 Post-Refi
ARV
$293,000
DSCR Loan Balance
$219,750
=
Equity in Property
$73,250 (25.0%)
Capital Left in Deal
−$9,882
=
Value Created
$83,133
Monthly Income & Expenses — Post-DSCR
Gross Rent
$1,981
Property Taxes
$14,875
Insurance
$138
Maintenance (6% rent)
$119
Management (6% rent)
$119
=
OpEx Subtotal
$15,250
=
Net Operating Income
−$13,269
DSCR P&I
$1,477/mo
=
Net Cash Flow
−$14,746/mo
DSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$219,750
Monthly P&I$1,477/mo
Net Cash Flow−$14,746/mo
Cash Back at Refi+$9,883
DSCR
-8.985x✗ Fail
Lender DSCR
0.120x✗ Fail
No Cash-Out
71.5% LTV — breakeven refi
Loan Amount$209,562
Monthly P&I$1,408/mo
Net Cash Flow−$14,678/mo
Cash Back at Refi+$0
DSCR
-9.422x✗ Fail
Lender DSCR
0.121x✗ Fail
Required Rent by DSCR Target
TargetRent Neededvs Current
1.00x$18,738/mo+$16,757 needed
1.10x$18,906/mo+$16,925 needed
1.20x$19,073/mo+$17,092 needed
1.30x$19,241/mo+$17,260 needed
1.40x$19,409/mo+$17,428 needed
30-Year Hold Projection
Click to expand
DSCR loan $219,750 @ 7.1% · 3% rent growth · Via Hard Money · Via All Cash (same DSCR loan)