4005 Englewood St, Houston, TX 77026
3bd / 1ba · 1,350 sqft · built 1950 · Single Family (SFR)Analyzed Apr 25, 2026$
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Scenario 1 — Flip
Hard money loan · sell at ARV after rehab
❌
FAILS FLIP
Min 20% ROI · 6-mo hold
-70.5%
Flip ROI
Cash to First Close
$10,000
what you bring day 1
Net Profit
−$19,195
Max Bid @ 20%
$54,504
−$19,195 profit ÷ $27,225 total invested = -70.5%
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$151,250
Purchase (95% LTV)
$71,250
Rehab (100%)
$80,000
Loan-to-ARV
85.9%
Monthly Interest
$1,259/mo
Down Payment5% of $75,000 purchase
$3,750+
Origination Fee1 pts on $151,250 loan
$2,500+
Closing Costs5% of purchase
$3,750=
Cash to First Close
$10,000Holding Period — 6 Months
HML Interest9.99% IO · $1,259/mo × 6$7,555
Property Taxes$149/mo × 6$895
Insurance$129/mo × 6$775
Total Holding Costs$9,225
Contingency Reserve10% of rehab — held, not at first close$8,000
Sale Event — Second Close
Sale Price (ARV)
$176,000−
HML Principal Payofffull IO loan balance
$151,250−
Closing Costs3.5% of sale price
$6,160−
Realtor Commission6% of sale price
$10,560=
Net Proceeds to You
$8,030Deal Summary
Net Proceeds at Closing
$8,030−
Cash to First Close
$10,000−
Holding Costs (6 mo)
$9,225−
Contingency Reserve
$8,000=
NET PROFIT
−$19,195Max Bid by ROI Target
| ROI | Max Bid | vs Offer |
|---|---|---|
| 10% | $56,535 | −$18,465 |
| 15% | $55,512 | −$19,488 |
| 20% ← | $54,504 | −$20,496 |
| 25% | $53,509 | −$21,491 |
| 30% | $52,529 | −$22,471 |
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
1.194x
DSCR
Monthly Cash Flow
$172/mo
Cash-on-Cash Yr 1
4.7%
$44,285 left in deal
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$151,250
Purchase (95% LTV)
$71,250
Rehab (100%)
$80,000
Loan-to-ARV
85.9%
Monthly Interest
$1,259/mo
Down Payment5% of $75,000 purchase
$3,750+
Origination Fee1 pts on $151,250 loan
$2,500+
Closing Costs5% of purchase
$3,750=
Cash to First Close
$10,000Holding Period — 2 Months
HML Interest9.99% IO · $1,259/mo × 2$2,518
Property Taxes$149/mo × 2$298
Insurance$129/mo × 2$258
Total Holding Costs$3,075
Contingency Reserve10% of rehab — held, not at first close$8,000
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$132,000−
HML Principal Payofffull IO loan balance
$151,250−
Origination Fee1 pts on $132,000
$1,320−
Closing Coststitle / appraisal / escrow
$2,640=
Cash to Bring to Close
−$23,210Deal Summary
Cash to First Close
$10,000+
Holding Costs (2 mo)
$3,075+
Contingency Reserve
$8,000−
Cash to Bring at Refi
+$23,210=
Capital Left in Deal
$44,285Equity Position — Day 1 Post-Refi
ARV
$176,000−
DSCR Loan Balance
$132,000=
Equity in Property
$44,000 (25.0%)−
Capital Left in Deal
$44,285=
Value Created
−$285$44,000 equity on $44,285 deployed = 1.0× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$1,520−
Property Taxes
$149−
Insurance
$129−
Maintenance (6% rent)
$91−
Management (6% rent)
$91=
OpEx Subtotal
$461=
Net Operating Income
$1,059−
DSCR P&I
$887/mo=
Net Cash Flow
$172/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$132,000
Monthly P&I$887/mo
Net Cash Flow$172/mo
Cash Still Required−$23,210
DSCR
1.194x✗ Fail
Lender DSCR
1.304x✓ Pass
No Cash-Out
75.0% LTV — capped short $23,210
Loan Amount$132,000
Monthly P&I$887/mo
Net Cash Flow$172/mo
Cash Still Required−$23,210
DSCR
1.194x✗ Fail
Lender DSCR
1.304x✓ Pass
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $1,324/mo | ✓ met |
| 1.10x | $1,425/mo | ✓ met |
| 1.20x | $1,526/mo | +$6 needed |
| 1.30x ← | $1,627/mo | +$107 needed |
| 1.40x | $1,728/mo | +$208 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
1.194x
DSCR
Monthly Cash Flow
$172/mo
Cash-on-Cash Yr 1
5.3%
$39,267 left in deal
Acquisition Event — First Close
Purchase Price
$75,000+
Rehab Budget
$80,000+
Closing Costs5% of purchase
$3,750=
Total Cash to First Close
$158,750Holding Period — 2 Months
Property Taxes$149/mo × 2$298
Insurance$129/mo × 2$258
Total Holding Costs$557
Contingency Reserve10% of rehab — held, not at first close$8,000
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$132,000−
Origination Fee1 pts on $132,000
$1,320−
Closing Coststitle / appraisal / escrow
$2,640=
Net Cash Recovered
$128,040Deal Summary
Total Cash to First Close
$158,750+
Holding Costs (2 mo)
$557+
Contingency Reserve
$8,000−
Net Cash Recovered at Refi
$128,040=
Capital Left in Deal
$39,267Equity Position — Day 1 Post-Refi
ARV
$176,000−
DSCR Loan Balance
$132,000=
Equity in Property
$44,000 (25.0%)−
Capital Left in Deal
$39,267=
Value Created
$4,733$44,000 equity on $39,267 deployed = 1.1× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$1,520−
Property Taxes
$149−
Insurance
$129−
Maintenance (6% rent)
$91−
Management (6% rent)
$91=
OpEx Subtotal
$461=
Net Operating Income
$1,059−
DSCR P&I
$887/mo=
Net Cash Flow
$172/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$132,000
Monthly P&I$887/mo
Net Cash Flow$172/mo
Cash Still Required−$39,267
DSCR
1.194x✗ Fail
Lender DSCR
1.304x✓ Pass
No Cash-Out
75.0% LTV — capped short $39,267
Loan Amount$132,000
Monthly P&I$887/mo
Net Cash Flow$172/mo
Cash Still Required−$39,267
DSCR
1.194x✗ Fail
Lender DSCR
1.304x✓ Pass
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $1,324/mo | ✓ met |
| 1.10x | $1,425/mo | ✓ met |
| 1.20x | $1,526/mo | +$6 needed |
| 1.30x ← | $1,627/mo | +$107 needed |
| 1.40x | $1,728/mo | +$208 needed |