6200 Locke Ln, Houston, TX 77057
3bd / 2ba · 1,788 sqft · built 1958 · Single Family (SFR)Analyzed Jun 15, 2026$
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Scenario 1 — Flip
Hard money loan · sell at ARV after rehab
❌
FAILS FLIP
Min 20% ROI · 6-mo hold
-105.3%
Flip ROI
Cash to First Close
$62,671
what you bring day 1
Net Profit
−$133,940
Max Bid @ 20%
$416,621
−$133,940 profit ÷ $127,210 total invested = -105.3%
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$708,105
Purchase (95% LTV)
$528,105
Rehab (100%)
$180,000
Loan-to-ARV
91.4%
Monthly Interest
$5,895/mo
Down Payment5% of $555,900 purchase
$27,795+
Origination Fee1 pts on $708,105 loan
$7,081+
Closing Costs5% of purchase
$27,795=
Cash to First Close
$62,671Holding Period — 6 Months
HML Interest9.99% IO · $5,895/mo × 6$35,370
Property Taxes$1,248/mo × 6$7,490
Insurance$613/mo × 6$3,680
Total Holding Costs$46,539
Contingency Reserve10% of rehab — held, not at first close$18,000
Sale Event — Second Close
Sale Price (ARV)
$775,000−
HML Principal Payofffull IO loan balance
$708,105−
Closing Costs3.5% of sale price
$27,125−
Realtor Commission6% of sale price
$46,500=
Net Proceeds to You
−$6,730Deal Summary
Net Proceeds at Closing
−$6,730−
Cash to First Close
$62,671−
Holding Costs (6 mo)
$46,539−
Contingency Reserve
$18,000=
NET PROFIT
−$133,940Max Bid by ROI Target
| ROI | Max Bid | vs Offer |
|---|---|---|
| 10% | $425,898 | −$130,002 |
| 15% | $421,227 | −$134,673 |
| 20% ← | $416,621 | −$139,279 |
| 25% | $412,081 | −$143,819 |
| 30% | $407,604 | −$148,296 |
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
0.304x
DSCR
Monthly Cash Flow
−$2,720/mo
Cash-on-Cash Yr 1
-13.6%
$240,477 left in deal
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$708,105
Purchase (95% LTV)
$528,105
Rehab (100%)
$180,000
Loan-to-ARV
91.4%
Monthly Interest
$5,895/mo
Down Payment5% of $555,900 purchase
$27,795+
Origination Fee1 pts on $708,105 loan
$7,081+
Closing Costs5% of purchase
$27,795=
Cash to First Close
$62,671Holding Period — 2 Months
HML Interest9.99% IO · $5,895/mo × 2$11,790
Property Taxes$1,248/mo × 2$2,497
Insurance$613/mo × 2$1,227
Total Holding Costs$15,513
Contingency Reserve10% of rehab — held, not at first close$18,000
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$581,250−
HML Principal Payofffull IO loan balance
$708,105−
Origination Fee1 pts on $581,250
$5,813−
Closing Coststitle / appraisal / escrow
$11,625=
Cash to Bring to Close
−$144,293Deal Summary
Cash to First Close
$62,671+
Holding Costs (2 mo)
$15,513+
Contingency Reserve
$18,000−
Cash to Bring at Refi
+$144,293=
Capital Left in Deal
$240,477Equity Position — Day 1 Post-Refi
ARV
$775,000−
DSCR Loan Balance
$581,250=
Equity in Property
$193,750 (25.0%)−
Capital Left in Deal
$240,477=
Value Created
−$46,727$193,750 equity on $240,477 deployed = 0.8× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$3,463−
Property Taxes
$1,248−
Insurance
$613−
Maintenance (6% rent)
$208−
Management (6% rent)
$208=
OpEx Subtotal
$2,277=
Net Operating Income
$1,186−
DSCR P&I
$3,906/mo=
Net Cash Flow
−$2,720/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$581,250
Monthly P&I$3,906/mo
Net Cash Flow−$2,720/mo
Cash Still Required−$144,293
DSCR
0.304x✗ Fail
Lender DSCR
0.600x✗ Fail
No Cash-Out
75.0% LTV — capped short $144,293
Loan Amount$581,250
Monthly P&I$3,906/mo
Net Cash Flow−$2,720/mo
Cash Still Required−$144,293
DSCR
0.304x✗ Fail
Lender DSCR
0.600x✗ Fail
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $6,554/mo | +$3,091 needed |
| 1.10x | $6,998/mo | +$3,535 needed |
| 1.20x | $7,442/mo | +$3,979 needed |
| 1.30x ← | $7,886/mo | +$4,423 needed |
| 1.40x | $8,330/mo | +$4,867 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
0.304x
DSCR
Monthly Cash Flow
−$2,720/mo
Cash-on-Cash Yr 1
-14.7%
$221,606 left in deal
Acquisition Event — First Close
Purchase Price
$555,900+
Rehab Budget
$180,000+
Closing Costs5% of purchase
$27,795=
Total Cash to First Close
$763,695Holding Period — 2 Months
Property Taxes$1,248/mo × 2$2,497
Insurance$613/mo × 2$1,227
Total Holding Costs$3,723
Contingency Reserve10% of rehab — held, not at first close$18,000
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$581,250−
Origination Fee1 pts on $581,250
$5,813−
Closing Coststitle / appraisal / escrow
$11,625=
Net Cash Recovered
$563,813Deal Summary
Total Cash to First Close
$763,695+
Holding Costs (2 mo)
$3,723+
Contingency Reserve
$18,000−
Net Cash Recovered at Refi
$563,813=
Capital Left in Deal
$221,606Equity Position — Day 1 Post-Refi
ARV
$775,000−
DSCR Loan Balance
$581,250=
Equity in Property
$193,750 (25.0%)−
Capital Left in Deal
$221,606=
Value Created
−$27,856$193,750 equity on $221,606 deployed = 0.9× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$3,463−
Property Taxes
$1,248−
Insurance
$613−
Maintenance (6% rent)
$208−
Management (6% rent)
$208=
OpEx Subtotal
$2,277=
Net Operating Income
$1,186−
DSCR P&I
$3,906/mo=
Net Cash Flow
−$2,720/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$581,250
Monthly P&I$3,906/mo
Net Cash Flow−$2,720/mo
Cash Still Required−$221,606
DSCR
0.304x✗ Fail
Lender DSCR
0.600x✗ Fail
No Cash-Out
75.0% LTV — capped short $221,606
Loan Amount$581,250
Monthly P&I$3,906/mo
Net Cash Flow−$2,720/mo
Cash Still Required−$221,606
DSCR
0.304x✗ Fail
Lender DSCR
0.600x✗ Fail
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $6,554/mo | +$3,091 needed |
| 1.10x | $6,998/mo | +$3,535 needed |
| 1.20x | $7,442/mo | +$3,979 needed |
| 1.30x ← | $7,886/mo | +$4,423 needed |
| 1.40x | $8,330/mo | +$4,867 needed |