3918 Brownstone Ln, Houston, TX 77053
3bd / 2ba · 909 sqft · built 1970 · Single Family (SFR)Analyzed Jun 17, 2026$
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Scenario 1 — Flip
Hard money loan · sell at ARV after rehab
✅
PASSES FLIP
Min 20% ROI · 6-mo hold
202.8%
Flip ROI
Cash to First Close
$10,500
what you bring day 1
Net Profit
$44,747
Max Bid @ 20%
$116,652
$44,747 profit ÷ $22,063 total invested = 202.8%
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$116,000
Purchase (95% LTV)
$76,000
Rehab (100%)
$40,000
Loan-to-ARV
57.4%
Monthly Interest
$966/mo
Down Payment5% of $80,000 purchase
$4,000+
Origination Fee1 pts on $116,000 loan
$2,500+
Closing Costs5% of purchase
$4,000=
Cash to First Close
$10,500Holding Period — 6 Months
HML Interest9.99% IO · $966/mo × 6$5,794
Property Taxes$195/mo × 6$1,169
Insurance$100/mo × 6$600
Total Holding Costs$7,563
Contingency Reserve10% of rehab — held, not at first close$4,000
Sale Event — Second Close
Sale Price (ARV)
$202,000−
HML Principal Payofffull IO loan balance
$116,000−
Closing Costs3.5% of sale price
$7,070−
Realtor Commission6% of sale price
$12,120=
Net Proceeds to You
$66,810Deal Summary
Net Proceeds at Closing
$66,810−
Cash to First Close
$10,500−
Holding Costs (6 mo)
$7,563−
Contingency Reserve
$4,000=
NET PROFIT
$44,747Max Bid by ROI Target
| ROI | Max Bid | vs Offer |
|---|---|---|
| 10% | $119,015 | ✓ ok |
| 15% | $117,825 | ✓ ok |
| 20% ← | $116,652 | ✓ ok |
| 25% | $115,495 | ✓ ok |
| 30% | $114,355 | ✓ 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
1.036x
DSCR
Monthly Cash Flow
$37/mo
Cash-on-Cash Yr 1
N/A
−$13,934 left in deal
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$116,000
Purchase (95% LTV)
$76,000
Rehab (100%)
$40,000
Loan-to-ARV
57.4%
Monthly Interest
$966/mo
Down Payment5% of $80,000 purchase
$4,000+
Origination Fee1 pts on $116,000 loan
$2,500+
Closing Costs5% of purchase
$4,000=
Cash to First Close
$10,500Holding Period — 2 Months
HML Interest9.99% IO · $966/mo × 2$1,931
Property Taxes$195/mo × 2$390
Insurance$100/mo × 2$200
Total Holding Costs$2,521
Contingency Reserve10% of rehab — held, not at first close$4,000
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$151,500−
HML Principal Payofffull IO loan balance
$116,000−
Origination Fee1 pts on $151,500
$1,515−
Closing Coststitle / appraisal / escrow
$3,030=
Cash Back to You
+$30,955Deal Summary
Cash to First Close
$10,500+
Holding Costs (2 mo)
$2,521+
Contingency Reserve
$4,000−
Cash Back at Refi
−$30,955=
Capital Left in Deal
−$13,934Equity Position — Day 1 Post-Refi
ARV
$202,000−
DSCR Loan Balance
$151,500=
Equity in Property
$50,500 (25.0%)−
Capital Left in Deal
−$13,934=
Value Created
$64,434Monthly Income & Expenses — Post-DSCR
Gross Rent
$1,534−
Property Taxes
$195−
Insurance
$100−
Maintenance (6% rent)
$92−
Management (6% rent)
$92=
OpEx Subtotal
$479=
Net Operating Income
$1,055−
DSCR P&I
$1,018/mo=
Net Cash Flow
$37/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$151,500
Monthly P&I$1,018/mo
Net Cash Flow$37/mo
Cash Back at Refi+$30,955
DSCR
1.036x✗ Fail
Lender DSCR
1.168x✓ Pass
No Cash-Out
59.2% LTV — breakeven refi
Loan Amount$119,588
Monthly P&I$804/mo
Net Cash Flow$251/mo
Cash Back at Refi+$0
DSCR
1.313x✓ Pass
Lender DSCR
1.396x✓ Pass
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $1,492/mo | ✓ met |
| 1.10x | $1,608/mo | +$74 needed |
| 1.20x | $1,723/mo | +$189 needed |
| 1.30x ← | $1,839/mo | +$305 needed |
| 1.40x | $1,955/mo | +$421 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
1.036x
DSCR
Monthly Cash Flow
$37/mo
Cash-on-Cash Yr 1
N/A
−$18,365 left in deal
Acquisition Event — First Close
Purchase Price
$80,000+
Rehab Budget
$40,000+
Closing Costs5% of purchase
$4,000=
Total Cash to First Close
$124,000Holding Period — 2 Months
Property Taxes$195/mo × 2$390
Insurance$100/mo × 2$200
Total Holding Costs$590
Contingency Reserve10% of rehab — held, not at first close$4,000
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$151,500−
Origination Fee1 pts on $151,500
$1,515−
Closing Coststitle / appraisal / escrow
$3,030=
Net Cash Recovered
$146,955Deal Summary
Total Cash to First Close
$124,000+
Holding Costs (2 mo)
$590+
Contingency Reserve
$4,000−
Net Cash Recovered at Refi
$146,955=
Capital Left in Deal
−$18,365Equity Position — Day 1 Post-Refi
ARV
$202,000−
DSCR Loan Balance
$151,500=
Equity in Property
$50,500 (25.0%)−
Capital Left in Deal
−$18,365=
Value Created
$68,865Monthly Income & Expenses — Post-DSCR
Gross Rent
$1,534−
Property Taxes
$195−
Insurance
$100−
Maintenance (6% rent)
$92−
Management (6% rent)
$92=
OpEx Subtotal
$479=
Net Operating Income
$1,055−
DSCR P&I
$1,018/mo=
Net Cash Flow
$37/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$151,500
Monthly P&I$1,018/mo
Net Cash Flow$37/mo
Cash Back at Refi+$18,365
DSCR
1.036x✗ Fail
Lender DSCR
1.168x✓ Pass
No Cash-Out
65.6% LTV — breakeven refi
Loan Amount$132,567
Monthly P&I$891/mo
Net Cash Flow$164/mo
Cash Back at Refi+$0
DSCR
1.184x✗ Fail
Lender DSCR
1.294x✓ Pass
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $1,492/mo | ✓ met |
| 1.10x | $1,608/mo | +$74 needed |
| 1.20x | $1,723/mo | +$189 needed |
| 1.30x ← | $1,839/mo | +$305 needed |
| 1.40x | $1,955/mo | +$421 needed |