4202 Denmark St, Houston, TX 77016
2bd / 2ba · 1,008 sqft · built 1940 · Single Family (SFR)Analyzed Apr 21, 2026$
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Scenario 1 — Flip
Hard money loan · sell at ARV after rehab
❌
FAILS FLIP
Min 20% ROI · 6-mo hold
-333.3%
Flip ROI
Cash to First Close
$18,500
what you bring day 1
Net Profit
−$111,389
Max Bid @ 20%
$57,428
−$111,389 profit ÷ $33,420 total invested = -333.3%
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$191,999
Purchase (95% LTV)
$151,999
Rehab (100%)
$40,000
Loan-to-ARV
152.4%
Monthly Interest
$1,598/mo
Down Payment5% of $159,999 purchase
$8,000+
Origination Fee1 pts on $191,999 loan
$2,500+
Closing Costs5% of purchase
$8,000=
Cash to First Close
$18,500Holding Period — 6 Months
HML Interest9.99% IO · $1,598/mo × 6$9,590
Property Taxes$55/mo × 6$330
Insurance$167/mo × 6$1,000
Total Holding Costs$10,920
Contingency Reserve10% of rehab — held, not at first close$4,000
Sale Event — Second Close
Sale Price (ARV)
$126,000−
HML Principal Payofffull IO loan balance
$191,999−
Closing Costs3.5% of sale price
$4,410−
Realtor Commission6% of sale price
$7,560=
Net Proceeds to You
−$77,969Deal Summary
Net Proceeds at Closing
−$77,969−
Cash to First Close
$18,500−
Holding Costs (6 mo)
$10,920−
Contingency Reserve
$4,000=
NET PROFIT
−$111,389Max Bid by ROI Target
| ROI | Max Bid | vs Offer |
|---|---|---|
| 10% | $58,866 | −$101,133 |
| 15% | $58,142 | −$101,857 |
| 20% ← | $57,428 | −$102,571 |
| 25% | $56,724 | −$103,275 |
| 30% | $56,029 | −$103,970 |
Scenario 2 — HM→DSCR
Hard money @ 9.99% IO → DSCR refi · 75% ARV · 7.1% / 30yr
✅
PASSES DSCR
Min 1.30x · 7.1% / 30-yr DSCR · 75% of ARV
1.562x
DSCR
Monthly Cash Flow
$357/mo
Cash-on-Cash Yr 1
3.4%
$126,474 left in deal
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$191,999
Purchase (95% LTV)
$151,999
Rehab (100%)
$40,000
Loan-to-ARV
152.4%
Monthly Interest
$1,598/mo
Down Payment5% of $159,999 purchase
$8,000+
Origination Fee1 pts on $191,999 loan
$2,500+
Closing Costs5% of purchase
$8,000=
Cash to First Close
$18,500Holding Period — 2 Months
HML Interest9.99% IO · $1,598/mo × 2$3,197
Property Taxes$55/mo × 2$110
Insurance$167/mo × 2$333
Total Holding Costs$3,640
Contingency Reserve10% of rehab — held, not at first close$4,000
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$94,500−
HML Principal Payofffull IO loan balance
$191,999−
Origination Fee1 pts on $94,500
$945−
Closing Coststitle / appraisal / escrow
$1,890=
Cash to Bring to Close
−$100,334Deal Summary
Cash to First Close
$18,500+
Holding Costs (2 mo)
$3,640+
Contingency Reserve
$4,000−
Cash to Bring at Refi
+$100,334=
Capital Left in Deal
$126,474Equity Position — Day 1 Post-Refi
ARV
$126,000−
DSCR Loan Balance
$94,500=
Equity in Property
$31,500 (25.0%)−
Capital Left in Deal
$126,474=
Value Created
−$94,974$31,500 equity on $126,474 deployed = 0.2× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$1,379−
Property Taxes
$55−
Insurance
$167−
Maintenance (6% rent)
$83−
Management (6% rent)
$83=
OpEx Subtotal
$387=
Net Operating Income
$992−
DSCR P&I
$635/mo=
Net Cash Flow
$357/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$94,500
Monthly P&I$635/mo
Net Cash Flow$357/mo
Cash Still Required−$100,334
DSCR
1.562x✓ Pass
Lender DSCR
1.610x✓ Pass
No Cash-Out
75.0% LTV — capped short $100,334
Loan Amount$94,500
Monthly P&I$635/mo
Net Cash Flow$357/mo
Cash Still Required−$100,334
DSCR
1.562x✓ Pass
Lender DSCR
1.610x✓ Pass
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $973/mo | ✓ met |
| 1.10x | $1,046/mo | ✓ met |
| 1.20x | $1,118/mo | ✓ met |
| 1.30x ← | $1,190/mo | ✓ met |
| 1.40x | $1,262/mo | ✓ met |
Scenario 3 — Cash→DSCR
All-cash purchase → DSCR refi · 75% ARV · 7.1% / 30yr
✅
PASSES DSCR
Min 1.30x · 7.1% / 30-yr DSCR · 75% of ARV
1.562x
DSCR
Monthly Cash Flow
$357/mo
Cash-on-Cash Yr 1
3.5%
$120,777 left in deal
Acquisition Event — First Close
Purchase Price
$159,999+
Rehab Budget
$40,000+
Closing Costs5% of purchase
$8,000=
Total Cash to First Close
$207,999Holding Period — 2 Months
Property Taxes$55/mo × 2$110
Insurance$167/mo × 2$333
Total Holding Costs$443
Contingency Reserve10% of rehab — held, not at first close$4,000
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$94,500−
Origination Fee1 pts on $94,500
$945−
Closing Coststitle / appraisal / escrow
$1,890=
Net Cash Recovered
$91,665Deal Summary
Total Cash to First Close
$207,999+
Holding Costs (2 mo)
$443+
Contingency Reserve
$4,000−
Net Cash Recovered at Refi
$91,665=
Capital Left in Deal
$120,777Equity Position — Day 1 Post-Refi
ARV
$126,000−
DSCR Loan Balance
$94,500=
Equity in Property
$31,500 (25.0%)−
Capital Left in Deal
$120,777=
Value Created
−$89,277$31,500 equity on $120,777 deployed = 0.3× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$1,379−
Property Taxes
$55−
Insurance
$167−
Maintenance (6% rent)
$83−
Management (6% rent)
$83=
OpEx Subtotal
$387=
Net Operating Income
$992−
DSCR P&I
$635/mo=
Net Cash Flow
$357/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$94,500
Monthly P&I$635/mo
Net Cash Flow$357/mo
Cash Still Required−$120,777
DSCR
1.562x✓ Pass
Lender DSCR
1.610x✓ Pass
No Cash-Out
75.0% LTV — capped short $120,777
Loan Amount$94,500
Monthly P&I$635/mo
Net Cash Flow$357/mo
Cash Still Required−$120,777
DSCR
1.562x✓ Pass
Lender DSCR
1.610x✓ Pass
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $973/mo | ✓ met |
| 1.10x | $1,046/mo | ✓ met |
| 1.20x | $1,118/mo | ✓ met |
| 1.30x ← | $1,190/mo | ✓ met |
| 1.40x | $1,262/mo | ✓ met |