215 Pennsylvania St, South Houston, TX 77587
3bd / 1.5ba · 1,575 sqft · built 1955 · Single Family (SFR)Analyzed May 5, 2026$
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Scenario 1 — Flip
Hard money loan · sell at ARV after rehab
✅
PASSES FLIP
Min 20% ROI · 6-mo hold
60.5%
Flip ROI
Cash to First Close
$18,500
what you bring day 1
Net Profit
$22,782
Max Bid @ 20%
$173,827
$22,782 profit ÷ $37,669 total invested = 60.5%
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$201,999
Purchase (95% LTV)
$151,999
Rehab (100%)
$50,000
Loan-to-ARV
69.7%
Monthly Interest
$1,682/mo
Down Payment5% of $159,999 purchase
$8,000+
Origination Fee1 pts on $201,999 loan
$2,500+
Closing Costs5% of purchase
$8,000=
Cash to First Close
$18,500Holding Period — 6 Months
HML Interest9.99% IO · $1,682/mo × 6$10,090
Property Taxes$505/mo × 6$3,030
Insurance$175/mo × 6$1,050
Total Holding Costs$14,169
Contingency Reserve10% of rehab — held, not at first close$5,000
Sale Event — Second Close
Sale Price (ARV)
$290,000−
HML Principal Payofffull IO loan balance
$201,999−
Closing Costs3.5% of sale price
$10,150−
Realtor Commission6% of sale price
$17,400=
Net Proceeds to You
$60,451Deal Summary
Net Proceeds at Closing
$60,451−
Cash to First Close
$18,500−
Holding Costs (6 mo)
$14,169−
Contingency Reserve
$5,000=
NET PROFIT
$22,782Max Bid by ROI Target
| ROI | Max Bid | vs Offer |
|---|---|---|
| 10% | $177,322 | ✓ ok |
| 15% | $175,562 | ✓ ok |
| 20% ← | $173,827 | ✓ ok |
| 25% | $172,116 | ✓ ok |
| 30% | $170,429 | ✓ ok |
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
0.644x
DSCR
Monthly Cash Flow
−$520/mo
Cash-on-Cash Yr 1
-32.4%
$19,247 left in deal
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$201,999
Purchase (95% LTV)
$151,999
Rehab (100%)
$50,000
Loan-to-ARV
69.7%
Monthly Interest
$1,682/mo
Down Payment5% of $159,999 purchase
$8,000+
Origination Fee1 pts on $201,999 loan
$2,500+
Closing Costs5% of purchase
$8,000=
Cash to First Close
$18,500Holding Period — 2 Months
HML Interest9.99% IO · $1,682/mo × 2$3,363
Property Taxes$505/mo × 2$1,010
Insurance$175/mo × 2$350
Total Holding Costs$4,723
Contingency Reserve10% of rehab — held, not at first close$5,000
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$217,500−
HML Principal Payofffull IO loan balance
$201,999−
Origination Fee1 pts on $217,500
$2,175−
Closing Coststitle / appraisal / escrow
$4,350=
Cash Back to You
+$8,976Deal Summary
Cash to First Close
$18,500+
Holding Costs (2 mo)
$4,723+
Contingency Reserve
$5,000−
Cash Back at Refi
−$8,976=
Capital Left in Deal
$19,247Equity Position — Day 1 Post-Refi
ARV
$290,000−
DSCR Loan Balance
$217,500=
Equity in Property
$72,500 (25.0%)−
Capital Left in Deal
$19,247=
Value Created
$53,253$72,500 equity on $19,247 deployed = 3.8× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$1,843−
Property Taxes
$505−
Insurance
$175−
Maintenance (6% rent)
$111−
Management (6% rent)
$111=
OpEx Subtotal
$901=
Net Operating Income
$942−
DSCR P&I
$1,462/mo=
Net Cash Flow
−$520/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$217,500
Monthly P&I$1,462/mo
Net Cash Flow−$520/mo
Cash Back at Refi+$8,976
DSCR
0.644x✗ Fail
Lender DSCR
0.861x✗ Fail
No Cash-Out
71.8% LTV — breakeven refi
Loan Amount$208,246
Monthly P&I$1,399/mo
Net Cash Flow−$458/mo
Cash Back at Refi+$0
DSCR
0.673x✗ Fail
Lender DSCR
0.886x✗ Fail
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $2,434/mo | +$591 needed |
| 1.10x | $2,600/mo | +$757 needed |
| 1.20x | $2,766/mo | +$923 needed |
| 1.30x ← | $2,932/mo | +$1,089 needed |
| 1.40x | $3,098/mo | +$1,255 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
0.644x
DSCR
Monthly Cash Flow
−$520/mo
Cash-on-Cash Yr 1
-46.6%
$13,384 left in deal
Acquisition Event — First Close
Purchase Price
$159,999+
Rehab Budget
$50,000+
Closing Costs5% of purchase
$8,000=
Total Cash to First Close
$217,999Holding Period — 2 Months
Property Taxes$505/mo × 2$1,010
Insurance$175/mo × 2$350
Total Holding Costs$1,360
Contingency Reserve10% of rehab — held, not at first close$5,000
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$217,500−
Origination Fee1 pts on $217,500
$2,175−
Closing Coststitle / appraisal / escrow
$4,350=
Net Cash Recovered
$210,975Deal Summary
Total Cash to First Close
$217,999+
Holding Costs (2 mo)
$1,360+
Contingency Reserve
$5,000−
Net Cash Recovered at Refi
$210,975=
Capital Left in Deal
$13,384Equity Position — Day 1 Post-Refi
ARV
$290,000−
DSCR Loan Balance
$217,500=
Equity in Property
$72,500 (25.0%)−
Capital Left in Deal
$13,384=
Value Created
$59,116$72,500 equity on $13,384 deployed = 5.4× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$1,843−
Property Taxes
$505−
Insurance
$175−
Maintenance (6% rent)
$111−
Management (6% rent)
$111=
OpEx Subtotal
$901=
Net Operating Income
$942−
DSCR P&I
$1,462/mo=
Net Cash Flow
−$520/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$217,500
Monthly P&I$1,462/mo
Net Cash Flow−$520/mo
Cash Still Required−$13,384
DSCR
0.644x✗ Fail
Lender DSCR
0.861x✗ Fail
No Cash-Out
75.0% LTV — capped short $13,384
Loan Amount$217,500
Monthly P&I$1,462/mo
Net Cash Flow−$520/mo
Cash Still Required−$13,384
DSCR
0.644x✗ Fail
Lender DSCR
0.861x✗ Fail
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $2,434/mo | +$591 needed |
| 1.10x | $2,600/mo | +$757 needed |
| 1.20x | $2,766/mo | +$923 needed |
| 1.30x ← | $2,932/mo | +$1,089 needed |
| 1.40x | $3,098/mo | +$1,255 needed |