9222 Merna Dr, Houston, TX 77040
3bd / 2ba · 1,984 sqft · built 1972 · Single Family (SFR)Analyzed Jul 13, 2026$
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Scenario 1 — Flip
Hard money loan · sell at ARV after rehab
❌
FAILS FLIP
Min 20% ROI · 6-mo hold
-25.3%
Flip ROI
Cash to First Close
$21,000
what you bring day 1
Net Profit
−$11,014
Max Bid @ 20%
$167,856
−$11,014 profit ÷ $43,575 total invested = -25.3%
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$240,749
Purchase (95% LTV)
$175,749
Rehab (100%)
$65,000
Loan-to-ARV
79.7%
Monthly Interest
$2,004/mo
Down Payment5% of $184,999 purchase
$9,250+
Origination Fee1 pts on $240,749 loan
$2,500+
Closing Costs5% of purchase
$9,250=
Cash to First Close
$21,000Holding Period — 6 Months
HML Interest9.99% IO · $2,004/mo × 6$12,025
Property Taxes$467/mo × 6$2,800
Insurance$208/mo × 6$1,250
Total Holding Costs$16,075
Contingency Reserve10% of rehab — held, not at first close$6,500
Sale Event — Second Close
Sale Price (ARV)
$302,000−
HML Principal Payofffull IO loan balance
$240,749−
Closing Costs3.5% of sale price
$10,570−
Realtor Commission6% of sale price
$18,120=
Net Proceeds to You
$32,561Deal Summary
Net Proceeds at Closing
$32,561−
Cash to First Close
$21,000−
Holding Costs (6 mo)
$16,075−
Contingency Reserve
$6,500=
NET PROFIT
−$11,014Max Bid by ROI Target
| ROI | Max Bid | vs Offer |
|---|---|---|
| 10% | $171,464 | −$13,535 |
| 15% | $169,647 | −$15,352 |
| 20% ← | $167,856 | −$17,143 |
| 25% | $166,090 | −$18,909 |
| 30% | $164,348 | −$20,651 |
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
0.683x
DSCR
Monthly Cash Flow
−$483/mo
Cash-on-Cash Yr 1
-10.7%
$53,902 left in deal
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$240,749
Purchase (95% LTV)
$175,749
Rehab (100%)
$65,000
Loan-to-ARV
79.7%
Monthly Interest
$2,004/mo
Down Payment5% of $184,999 purchase
$9,250+
Origination Fee1 pts on $240,749 loan
$2,500+
Closing Costs5% of purchase
$9,250=
Cash to First Close
$21,000Holding Period — 2 Months
HML Interest9.99% IO · $2,004/mo × 2$4,008
Property Taxes$467/mo × 2$933
Insurance$208/mo × 2$417
Total Holding Costs$5,358
Contingency Reserve10% of rehab — held, not at first close$6,500
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$226,500−
HML Principal Payofffull IO loan balance
$240,749−
Origination Fee1 pts on $226,500
$2,265−
Closing Coststitle / appraisal / escrow
$4,530=
Cash to Bring to Close
−$21,044Deal Summary
Cash to First Close
$21,000+
Holding Costs (2 mo)
$5,358+
Contingency Reserve
$6,500−
Cash to Bring at Refi
+$21,044=
Capital Left in Deal
$53,902Equity Position — Day 1 Post-Refi
ARV
$302,000−
DSCR Loan Balance
$226,500=
Equity in Property
$75,500 (25.0%)−
Capital Left in Deal
$53,902=
Value Created
$21,598$75,500 equity on $53,902 deployed = 1.4× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$1,948−
Property Taxes
$467−
Insurance
$208−
Maintenance (6% rent)
$117−
Management (6% rent)
$117=
OpEx Subtotal
$909=
Net Operating Income
$1,039−
DSCR P&I
$1,522/mo=
Net Cash Flow
−$483/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$226,500
Monthly P&I$1,522/mo
Net Cash Flow−$483/mo
Cash Still Required−$21,044
DSCR
0.683x✗ Fail
Lender DSCR
0.887x✗ Fail
No Cash-Out
75.0% LTV — capped short $21,044
Loan Amount$226,500
Monthly P&I$1,522/mo
Net Cash Flow−$483/mo
Cash Still Required−$21,044
DSCR
0.683x✗ Fail
Lender DSCR
0.887x✗ Fail
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $2,497/mo | +$549 needed |
| 1.10x | $2,670/mo | +$722 needed |
| 1.20x | $2,843/mo | +$895 needed |
| 1.30x ← | $3,016/mo | +$1,068 needed |
| 1.40x | $3,189/mo | +$1,241 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
0.683x
DSCR
Monthly Cash Flow
−$483/mo
Cash-on-Cash Yr 1
-12.2%
$47,394 left in deal
Acquisition Event — First Close
Purchase Price
$184,999+
Rehab Budget
$65,000+
Closing Costs5% of purchase
$9,250=
Total Cash to First Close
$259,249Holding Period — 2 Months
Property Taxes$467/mo × 2$933
Insurance$208/mo × 2$417
Total Holding Costs$1,350
Contingency Reserve10% of rehab — held, not at first close$6,500
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$226,500−
Origination Fee1 pts on $226,500
$2,265−
Closing Coststitle / appraisal / escrow
$4,530=
Net Cash Recovered
$219,705Deal Summary
Total Cash to First Close
$259,249+
Holding Costs (2 mo)
$1,350+
Contingency Reserve
$6,500−
Net Cash Recovered at Refi
$219,705=
Capital Left in Deal
$47,394Equity Position — Day 1 Post-Refi
ARV
$302,000−
DSCR Loan Balance
$226,500=
Equity in Property
$75,500 (25.0%)−
Capital Left in Deal
$47,394=
Value Created
$28,106$75,500 equity on $47,394 deployed = 1.6× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$1,948−
Property Taxes
$467−
Insurance
$208−
Maintenance (6% rent)
$117−
Management (6% rent)
$117=
OpEx Subtotal
$909=
Net Operating Income
$1,039−
DSCR P&I
$1,522/mo=
Net Cash Flow
−$483/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$226,500
Monthly P&I$1,522/mo
Net Cash Flow−$483/mo
Cash Still Required−$47,394
DSCR
0.683x✗ Fail
Lender DSCR
0.887x✗ Fail
No Cash-Out
75.0% LTV — capped short $47,394
Loan Amount$226,500
Monthly P&I$1,522/mo
Net Cash Flow−$483/mo
Cash Still Required−$47,394
DSCR
0.683x✗ Fail
Lender DSCR
0.887x✗ Fail
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $2,497/mo | +$549 needed |
| 1.10x | $2,670/mo | +$722 needed |
| 1.20x | $2,843/mo | +$895 needed |
| 1.30x ← | $3,016/mo | +$1,068 needed |
| 1.40x | $3,189/mo | +$1,241 needed |