1616 Daylight Lake Dr, Katy, TX 77493

4bd / 3ba · 2,288 sqft · built 2023 · Single FamilyAnalyzed Jul 30, 2026

DSCR

0.400x

FAIL

NOI ÷ debt service

Lender DSCR

0.735x

FAIL

EGI ÷ P&I+tax+ins+HOA

Monthly Cash Flow

−$1,032/mo

FAIL

post all expenses · day 1

Cash to Close

$109,790

80% LTV · single close

Value Generated

$61,900

ARV − purchase − rehab

Starting Equity %

36.3%

ARV − DSCR loan ÷ ARV, day 1

Purchase Price

Rehab Budget

ARV

Monthly Rent

Annual Taxes

Monthly HOA

ROI	Max Bid	vs Offer
10%	$296,090	−$23,910
15%	$293,592	−$26,408
20% ←	$291,130	−$28,870
25%	$288,703	−$31,297
30%	$286,310	−$33,690

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

0.340x

DSCR

Monthly Cash Flow

−$1,337/mo

Cash-on-Cash Yr 1

-20.9%

$76,686 left in deal

Acquisition Event — First Close

Hard Money Loan — 9.99% Interest-Only

Loan Amount

$324,100

Purchase (95% LTV)

$304,000

Rehab (100%)

$20,100

Loan-to-ARV

80.6%

Monthly Interest

$2,698/mo

Down Payment5% of $320,000 purchase

$16,000

Origination Fee1 pts on $324,100 loan

$3,241

Closing Costs5% of purchase

$16,000

Cash to First Close

$35,241

Holding Period — 2 Months

HML Interest9.99% IO · $2,698/mo × 2$5,396

Property Taxes$914/mo × 2$1,827

Insurance$283/mo × 2$567

Total Holding Costs$7,790

Contingency Reserve10% of rehab — held, not at first close$2,010

DSCR Refinance — Second Close

DSCR Loan Proceeds75% of ARV · 7.1% / 30yr

$301,500

−

HML Principal Payofffull IO loan balance

$324,100

−

Origination Fee1 pts on $301,500

$3,015

−

Closing Coststitle / appraisal / escrow

$6,030

Cash to Bring to Close

−$31,645

Deal Summary

Cash to First Close

$35,241

Holding Costs (2 mo)

$7,790

Contingency Reserve

$2,010

−

Cash to Bring at Refi

+$31,645

Capital Left in Deal

$76,686

Equity Position — Day 1 Post-Refi

ARV

$402,000

−

DSCR Loan Balance

$301,500

Equity in Property

$100,500 (25.0%)

−

Capital Left in Deal

$76,686

Value Created

$23,814

$100,500 equity on $76,686 deployed = 1.3× equity leverage

Monthly Income & Expenses — Post-DSCR

Gross Rent

$2,143

−

Property Taxes

$914

−

Insurance

$283

−

Maintenance (6% rent)

$129

−

Management (6% rent)

$129

OpEx Subtotal

$1,454

Net Operating Income

$689

−

DSCR P&I

$2,026/mo

Net Cash Flow

−$1,337/mo

DSCR Ratios — Cash-Out vs No Cash-Out

Cash-Out Refi

75% of ARV — full LTV

Loan Amount$301,500

Monthly P&I$2,026/mo

Net Cash Flow−$1,337/mo

Cash Still Required−$31,645

DSCR

0.340x✗ Fail

Lender DSCR

0.665x✗ Fail

No Cash-Out

75.0% LTV — capped short $31,645

Loan Amount$301,500

Monthly P&I$2,026/mo

Net Cash Flow−$1,337/mo

Cash Still Required−$31,645

DSCR

0.340x✗ Fail

Lender DSCR

0.665x✗ Fail

Required Rent by DSCR Target

Target	Rent Needed	vs Current
1.00x	$3,663/mo	+$1,520 needed
1.10x	$3,893/mo	+$1,750 needed
1.20x	$4,123/mo	+$1,980 needed
1.30x ←	$4,354/mo	+$2,211 needed
1.40x	$4,584/mo	+$2,441 needed

Scenario 4 — Turn Key DSCR

Direct DSCR purchase · 80% of ARV · 7.1% / 30yr · one close

❌

FAILS DSCR

Min 1.30x · 7.1% / 30-yr DSCR · 80% of ARV

0.400x

DSCR

Cash to Close

$109,790

single close · no bridge

Monthly Cash Flow

−$1,032/mo

Cash-on-Cash Yr 1

-11.3%

Acquisition — Single Close

DSCR Purchase Loan — 7.1% / 30yr · Minimal Rehab · No Bridge

Loan Amount

$256,000

LTV (80% of ARV)

63.7%

Monthly P&I

$1,720/mo

Equity at Close

$64,000

Down Payment20.0% of $320,000 purchase

$64,000

Origination Fee1 pts on $256,000

$2,560

DSCR Closing Coststitle / appraisal / escrow

$5,120

Acquisition Closing5% of purchase

$16,000

Rehab Budgetcash, not financed by DSCR loan

$20,100

Contingency Reserve10% of rehab$2,010

Total Cash to Close

$109,790

Equity Position — Day 1 Post-Refi

Property Value

$402,000

−

DSCR Loan Balance

$256,000

Equity in Property

$146,000 (36.3%)

−

Capital Left in Deal

$109,790

Value Created

$36,210

$146,000 equity on $109,790 deployed = 1.3× equity leverage

Monthly Income & Expenses — Post-DSCR

Gross Rent

$2,143

−

Property Taxes

$914

−

Insurance

$283

−

Maintenance (6% rent)

$129

−

Management (6% rent)

$129

OpEx Subtotal

$1,454

Net Operating Income

$689

−

DSCR P&I

$1,720/mo

Net Cash Flow

−$1,032/mo

DSCR Ratios

DSCR (NOI / Debt Service)

0.400x✗ Fail

Lender DSCR (EGI / P&I+tax+ins+HOA)

0.735x✗ Fail

Required Rent by DSCR Target

Target	Rent Needed	vs Current
1.00x	$3,315/mo	+$1,172 needed
1.10x	$3,511/mo	+$1,368 needed
1.20x	$3,706/mo	+$1,563 needed
1.30x ←	$3,902/mo	+$1,759 needed
1.40x	$4,097/mo	+$1,954 needed