Test
Analyzed Apr 20, 2026$
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Scenario 1 — Flip
Hard money loan · sell at ARV after rehab
✅
PASSES FLIP
Min 20% ROI · 6-mo hold
151.4%
Flip ROI
Cash to First Close
$13,250
what you bring day 1
Net Profit
$41,918
Max Bid @ 20%
$140,321
$41,918 profit ÷ $27,680 total invested = 151.4%
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$152,127
Purchase (95% LTV)
$102,127
Rehab (100%)
$50,000
Loan-to-ARV
62.1%
Monthly Interest
$1,266/mo
Down Payment5% of $107,502 purchase
$5,375+
Origination Fee1 pts on $152,127 loan
$2,500+
Closing Costs5% of purchase
$5,375=
Cash to First Close
$13,250Holding Period — 6 Months
HML Interest9.99% IO · $1,266/mo × 6$7,599
Property Taxes$174/mo × 6$1,044
Insurance$131/mo × 6$788
Total Holding Costs$9,430
Contingency Reserve10% of rehab — held, not at first close$5,000
Sale Event — Second Close
Sale Price (ARV)
$245,000−
HML Principal Payofffull IO loan balance
$152,127−
Closing Costs3.5% of sale price
$8,575−
Realtor Commission6% of sale price
$14,700=
Net Proceeds to You
$69,598Deal Summary
Net Proceeds at Closing
$69,598−
Cash to First Close
$13,250−
Holding Costs (6 mo)
$9,430−
Contingency Reserve
$5,000=
NET PROFIT
$41,918Max Bid by ROI Target
| ROI | Max Bid | vs Offer |
|---|---|---|
| 10% | $143,159 | ✓ ok |
| 15% | $141,730 | ✓ ok |
| 20% ← | $140,321 | ✓ ok |
| 25% | $138,932 | ✓ ok |
| 30% | $137,563 | ✓ ok |
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
0.893x
DSCR
Monthly Cash Flow
−$132/mo
Cash-on-Cash Yr 1
N/A
−$4,717 left in deal
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$152,127
Purchase (95% LTV)
$102,127
Rehab (100%)
$50,000
Loan-to-ARV
62.1%
Monthly Interest
$1,266/mo
Down Payment5% of $107,502 purchase
$5,375+
Origination Fee1 pts on $152,127 loan
$2,500+
Closing Costs5% of purchase
$5,375=
Cash to First Close
$13,250Holding Period — 2 Months
HML Interest9.99% IO · $1,266/mo × 2$2,533
Property Taxes$174/mo × 2$348
Insurance$131/mo × 2$263
Total Holding Costs$3,143
Contingency Reserve10% of rehab — held, not at first close$5,000
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$183,750−
HML Principal Payofffull IO loan balance
$152,127−
Origination Fee1 pts on $183,750
$1,838−
Closing Coststitle / appraisal / escrow
$3,675=
Cash Back to You
+$26,111Deal Summary
Cash to First Close
$13,250+
Holding Costs (2 mo)
$3,143+
Contingency Reserve
$5,000−
Cash Back at Refi
−$26,111=
Capital Left in Deal
−$4,717Equity Position — Day 1 Post-Refi
ARV
$245,000−
DSCR Loan Balance
$183,750=
Equity in Property
$61,250 (25.0%)−
Capital Left in Deal
−$4,717=
Value Created
$65,967Monthly Income & Expenses — Post-DSCR
Gross Rent
$1,600−
Property Taxes
$174−
Insurance
$131−
Maintenance (6% rent)
$96−
Management (6% rent)
$96=
OpEx Subtotal
$497=
Net Operating Income
$1,103−
DSCR P&I
$1,235/mo=
Net Cash Flow
−$132/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$183,750
Monthly P&I$1,235/mo
Net Cash Flow−$132/mo
Cash Back at Refi+$26,111
DSCR
0.893x✗ Fail
Lender DSCR
1.039x✓ Pass
No Cash-Out
64.0% LTV — breakeven refi
Loan Amount$156,832
Monthly P&I$1,054/mo
Net Cash Flow$49/mo
Cash Back at Refi+$0
DSCR
1.046x✗ Fail
Lender DSCR
1.177x✓ Pass
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $1,750/mo | +$150 needed |
| 1.10x | $1,890/mo | +$290 needed |
| 1.20x | $2,031/mo | +$431 needed |
| 1.30x ← | $2,171/mo | +$571 needed |
| 1.40x | $2,311/mo | +$711 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
0.893x
DSCR
Monthly Cash Flow
−$132/mo
Cash-on-Cash Yr 1
N/A
−$9,750 left in deal
Acquisition Event — First Close
Purchase Price
$107,502+
Rehab Budget
$50,000+
Closing Costs5% of purchase
$5,375=
Total Cash to First Close
$162,877Holding Period — 2 Months
Property Taxes$174/mo × 2$348
Insurance$131/mo × 2$263
Total Holding Costs$610
Contingency Reserve10% of rehab — held, not at first close$5,000
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$183,750−
Origination Fee1 pts on $183,750
$1,838−
Closing Coststitle / appraisal / escrow
$3,675=
Net Cash Recovered
$178,238Deal Summary
Total Cash to First Close
$162,877+
Holding Costs (2 mo)
$610+
Contingency Reserve
$5,000−
Net Cash Recovered at Refi
$178,238=
Capital Left in Deal
−$9,750Equity Position — Day 1 Post-Refi
ARV
$245,000−
DSCR Loan Balance
$183,750=
Equity in Property
$61,250 (25.0%)−
Capital Left in Deal
−$9,750=
Value Created
$71,000Monthly Income & Expenses — Post-DSCR
Gross Rent
$1,600−
Property Taxes
$174−
Insurance
$131−
Maintenance (6% rent)
$96−
Management (6% rent)
$96=
OpEx Subtotal
$497=
Net Operating Income
$1,103−
DSCR P&I
$1,235/mo=
Net Cash Flow
−$132/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$183,750
Monthly P&I$1,235/mo
Net Cash Flow−$132/mo
Cash Back at Refi+$9,750
DSCR
0.893x✗ Fail
Lender DSCR
1.039x✓ Pass
No Cash-Out
70.9% LTV — breakeven refi
Loan Amount$173,698
Monthly P&I$1,167/mo
Net Cash Flow−$64/mo
Cash Back at Refi+$0
DSCR
0.945x✗ Fail
Lender DSCR
1.087x✓ Pass
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $1,750/mo | +$150 needed |
| 1.10x | $1,890/mo | +$290 needed |
| 1.20x | $2,031/mo | +$431 needed |
| 1.30x ← | $2,171/mo | +$571 needed |
| 1.40x | $2,311/mo | +$711 needed |