TBD
Analyzed Apr 26, 2026$
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Scenario 1 — Flip
Hard money loan · sell at ARV after rehab
❌
FAILS FLIP
Min 20% ROI · 6-mo hold
-674.4%
Flip ROI
Cash to First Close
$10,000
what you bring day 1
Net Profit
−$177,580
Max Bid @ 20%
$0
−$177,580 profit ÷ $26,330 total invested = -674.4%
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
15125000.0%
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$0/mo × 6$1
Insurance$129/mo × 6$775
Total Holding Costs$8,330
Contingency Reserve10% of rehab — held, not at first close$8,000
Sale Event — Second Close
Sale Price (ARV)
$1−
HML Principal Payofffull IO loan balance
$151,250−
Closing Costs3.5% of sale price
$0−
Realtor Commission6% of sale price
$0=
Net Proceeds to You
−$151,249Deal Summary
Net Proceeds at Closing
−$151,249−
Cash to First Close
$10,000−
Holding Costs (6 mo)
$8,330−
Contingency Reserve
$8,000=
NET PROFIT
−$177,580Max Bid by ROI Target
| ROI | Max Bid | vs Offer |
|---|---|---|
| 10% | $0 | −$75,000 |
| 15% | $0 | −$75,000 |
| 20% ← | $0 | −$75,000 |
| 25% | $0 | −$75,000 |
| 30% | $0 | −$75,000 |
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
-25469.027x
DSCR
Monthly Cash Flow
−$128/mo
Cash-on-Cash Yr 1
-0.9%
$172,026 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
15125000.0%
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$0/mo × 2$0
Insurance$129/mo × 2$258
Total Holding Costs$2,777
Contingency Reserve10% of rehab — held, not at first close$8,000
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$1−
HML Principal Payofffull IO loan balance
$151,250−
Origination Fee1 pts on $1
$0−
Closing Coststitle / appraisal / escrow
$0=
Cash to Bring to Close
−$151,249Deal Summary
Cash to First Close
$10,000+
Holding Costs (2 mo)
$2,777+
Contingency Reserve
$8,000−
Cash to Bring at Refi
+$151,249=
Capital Left in Deal
$172,026Equity Position — Day 1 Post-Refi
ARV
$1−
DSCR Loan Balance
$1=
Equity in Property
$0 (25.0%)−
Capital Left in Deal
$172,026=
Value Created
−$172,026$0 equity on $172,026 deployed = 0.0× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$1−
Property Taxes
$0−
Insurance
$129−
Maintenance (6% rent)
$0−
Management (6% rent)
$0=
OpEx Subtotal
$129=
Net Operating Income
−$128−
DSCR P&I
$0/mo=
Net Cash Flow
−$128/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$1
Monthly P&I$0/mo
Net Cash Flow−$128/mo
Cash Still Required−$151,249
DSCR
-25469.027x✗ Fail
Lender DSCR
0.008x✗ Fail
No Cash-Out
75.0% LTV — capped short $151,249
Loan Amount$1
Monthly P&I$0/mo
Net Cash Flow−$128/mo
Cash Still Required−$151,249
DSCR
-25469.027x✗ Fail
Lender DSCR
0.008x✗ Fail
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $147/mo | +$146 needed |
| 1.10x | $147/mo | +$146 needed |
| 1.20x | $147/mo | +$146 needed |
| 1.30x ← | $147/mo | +$146 needed |
| 1.40x | $147/mo | +$146 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
-25469.027x
DSCR
Monthly Cash Flow
−$128/mo
Cash-on-Cash Yr 1
-0.9%
$167,008 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$0/mo × 2$0
Insurance$129/mo × 2$258
Total Holding Costs$259
Contingency Reserve10% of rehab — held, not at first close$8,000
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$1−
Origination Fee1 pts on $1
$0−
Closing Coststitle / appraisal / escrow
$0=
Net Cash Recovered
$1Deal Summary
Total Cash to First Close
$158,750+
Holding Costs (2 mo)
$259+
Contingency Reserve
$8,000−
Net Cash Recovered at Refi
$1=
Capital Left in Deal
$167,008Equity Position — Day 1 Post-Refi
ARV
$1−
DSCR Loan Balance
$1=
Equity in Property
$0 (25.0%)−
Capital Left in Deal
$167,008=
Value Created
−$167,008$0 equity on $167,008 deployed = 0.0× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$1−
Property Taxes
$0−
Insurance
$129−
Maintenance (6% rent)
$0−
Management (6% rent)
$0=
OpEx Subtotal
$129=
Net Operating Income
−$128−
DSCR P&I
$0/mo=
Net Cash Flow
−$128/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$1
Monthly P&I$0/mo
Net Cash Flow−$128/mo
Cash Still Required−$167,008
DSCR
-25469.027x✗ Fail
Lender DSCR
0.008x✗ Fail
No Cash-Out
75.0% LTV — capped short $167,008
Loan Amount$1
Monthly P&I$0/mo
Net Cash Flow−$128/mo
Cash Still Required−$167,008
DSCR
-25469.027x✗ Fail
Lender DSCR
0.008x✗ Fail
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $147/mo | +$146 needed |
| 1.10x | $147/mo | +$146 needed |
| 1.20x | $147/mo | +$146 needed |
| 1.30x ← | $147/mo | +$146 needed |
| 1.40x | $147/mo | +$146 needed |