6510 Trail Valley Way, Houston, TX 77086
3bd / 2ba · 1,463 sqft · built 1978 · Single Family (SFR)Analyzed Jul 22, 2026$
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Scenario 1 — Flip
Hard money loan · sell at ARV after rehab
❌
FAILS FLIP
Min 20% ROI · 6-mo hold
13.0%
Flip ROI
Cash to First Close
$19,140
what you bring day 1
Net Profit
$3,917
Max Bid @ 20%
$158,185
$3,917 profit ÷ $30,039 total invested = 13.0%
Acquisition Event — First Close
Hard Money Loan — 9.5% Interest-Only
Loan Amount
$156,999
Purchase (95% LTV)
$151,999
Rehab (100%)
$5,000
Loan-to-ARV
74.4%
Monthly Interest
$1,243/mo
Down Payment5% of $159,999 purchase
$8,000+
Origination Fee2 pts on $156,999 loan
$3,140+
Closing Costs5% of purchase
$8,000=
Cash to First Close
$19,140Holding Period — 6 Months
HML Interest9.5% IO · $1,243/mo × 6$7,457
Property Taxes$353/mo × 6$2,117
Insurance$137/mo × 6$825
Total Holding Costs$10,399
Contingency Reserve10% of rehab — held, not at first close$500
Sale Event — Second Close
Sale Price (ARV)
$211,000−
HML Principal Payofffull IO loan balance
$156,999−
Closing Costs3.5% of sale price
$7,385−
Realtor Commission6% of sale price
$12,660=
Net Proceeds to You
$33,956Deal Summary
Net Proceeds at Closing
$33,956−
Cash to First Close
$19,140−
Holding Costs (6 mo)
$10,399−
Contingency Reserve
$500=
NET PROFIT
$3,917Max Bid by ROI Target
| ROI | Max Bid | vs Offer |
|---|---|---|
| 10% | $160,802 | ✓ ok |
| 15% | $159,484 | −$515 |
| 20% ← | $158,185 | −$1,814 |
| 25% | $156,905 | −$3,094 |
| 30% | $155,644 | −$4,355 |
Scenario 2 — HM→DSCR
Hard money @ 9.5% IO → DSCR refi · 75% ARV · 6.5% / 30yr
❌
FAILS DSCR
Min 1.30x · 6.5% / 30-yr DSCR · 75% of ARV
0.993x
DSCR
Monthly Cash Flow
−$7/mo
Cash-on-Cash Yr 1
-0.2%
$35,118 left in deal
Acquisition Event — First Close
Hard Money Loan — 9.5% Interest-Only
Loan Amount
$156,999
Purchase (95% LTV)
$151,999
Rehab (100%)
$5,000
Loan-to-ARV
74.4%
Monthly Interest
$1,243/mo
Down Payment5% of $159,999 purchase
$8,000+
Origination Fee2 pts on $156,999 loan
$3,140+
Closing Costs5% of purchase
$8,000=
Cash to First Close
$19,140Holding Period — 6 Months
HML Interest9.5% IO · $1,243/mo × 6$7,457
Property Taxes$353/mo × 6$2,117
Insurance$137/mo × 6$825
Total Holding Costs$10,399
Contingency Reserve10% of rehab — held, not at first close$500
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 6.5% / 30yr
$158,250−
HML Principal Payofffull IO loan balance
$156,999−
Origination Fee2 pts on $158,250
$3,165−
Closing Coststitle / appraisal / escrow
$3,165=
Cash to Bring to Close
−$5,079Deal Summary
Cash to First Close
$19,140+
Holding Costs (6 mo)
$10,399+
Contingency Reserve
$500−
Cash to Bring at Refi
+$5,079=
Capital Left in Deal
$35,118Equity Position — Day 1 Post-Refi
ARV
$211,000−
DSCR Loan Balance
$158,250=
Equity in Property
$52,750 (25.0%)−
Capital Left in Deal
$35,118=
Value Created
$17,632$52,750 equity on $35,118 deployed = 1.5× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$1,686−
Property Taxes
$353−
Insurance
$137−
Maintenance (6% rent)
$101−
Management (6% rent)
$101=
OpEx Subtotal
$693=
Net Operating Income
$993−
DSCR P&I
$1,000/mo=
Net Cash Flow
−$7/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$158,250
Monthly P&I$1,000/mo
Net Cash Flow−$7/mo
Cash Still Required−$5,079
DSCR
0.993x✗ Fail
Lender DSCR
1.131x✓ Pass
No Cash-Out
75.0% LTV — capped short $5,079
Loan Amount$158,250
Monthly P&I$1,000/mo
Net Cash Flow−$7/mo
Cash Still Required−$5,079
DSCR
0.993x✗ Fail
Lender DSCR
1.131x✓ Pass
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $1,694/mo | +$8 needed |
| 1.10x | $1,808/mo | +$122 needed |
| 1.20x | $1,921/mo | +$235 needed |
| 1.30x ← | $2,035/mo | +$349 needed |
| 1.40x | $2,148/mo | +$462 needed |
Scenario 3 — Cash→DSCR
All-cash purchase → DSCR refi · 75% ARV · 6.5% / 30yr
❌
FAILS DSCR
Min 1.30x · 6.5% / 30-yr DSCR · 75% of ARV
0.993x
DSCR
Monthly Cash Flow
−$7/mo
Cash-on-Cash Yr 1
-0.3%
$24,521 left in deal
Acquisition Event — First Close
Purchase Price
$159,999+
Rehab Budget
$5,000+
Closing Costs5% of purchase
$8,000=
Total Cash to First Close
$172,999Holding Period — 6 Months
Property Taxes$353/mo × 6$2,117
Insurance$137/mo × 6$825
Total Holding Costs$2,942
Contingency Reserve10% of rehab — held, not at first close$500
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 6.5% / 30yr
$158,250−
Origination Fee2 pts on $158,250
$3,165−
Closing Coststitle / appraisal / escrow
$3,165=
Net Cash Recovered
$151,920Deal Summary
Total Cash to First Close
$172,999+
Holding Costs (6 mo)
$2,942+
Contingency Reserve
$500−
Net Cash Recovered at Refi
$151,920=
Capital Left in Deal
$24,521Equity Position — Day 1 Post-Refi
ARV
$211,000−
DSCR Loan Balance
$158,250=
Equity in Property
$52,750 (25.0%)−
Capital Left in Deal
$24,521=
Value Created
$28,229$52,750 equity on $24,521 deployed = 2.2× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$1,686−
Property Taxes
$353−
Insurance
$137−
Maintenance (6% rent)
$101−
Management (6% rent)
$101=
OpEx Subtotal
$693=
Net Operating Income
$993−
DSCR P&I
$1,000/mo=
Net Cash Flow
−$7/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$158,250
Monthly P&I$1,000/mo
Net Cash Flow−$7/mo
Cash Still Required−$24,521
DSCR
0.993x✗ Fail
Lender DSCR
1.131x✓ Pass
No Cash-Out
75.0% LTV — capped short $24,521
Loan Amount$158,250
Monthly P&I$1,000/mo
Net Cash Flow−$7/mo
Cash Still Required−$24,521
DSCR
0.993x✗ Fail
Lender DSCR
1.131x✓ Pass
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $1,694/mo | +$8 needed |
| 1.10x | $1,808/mo | +$122 needed |
| 1.20x | $1,921/mo | +$235 needed |
| 1.30x ← | $2,035/mo | +$349 needed |
| 1.40x | $2,148/mo | +$462 needed |