2406 Encreek Rd, Houston, TX 77068

4bd / 2.5ba · 3,824 sqft · built 1972 · Single FamilyAnalyzed Jul 30, 2026

DSCR

0.646x

FAIL

NOI ÷ debt service

Lender DSCR

0.854x

FAIL

EGI ÷ P&I+tax+ins+HOA

Monthly Cash Flow

−$692/mo

FAIL

post all expenses · day 1

Cash to Close

$126,962

80% LTV · single close

Value Generated

$46,000

ARV − purchase − rehab

Starting Equity %

33.1%

ARV − DSCR loan ÷ ARV, day 1

Purchase Price

Rehab Budget

ARV

Monthly Rent

Annual Taxes

Monthly HOA

ROI	Max Bid	vs Offer
10%	$319,020	−$43,980
15%	$316,431	−$46,569
20% ←	$313,880	−$49,120
25%	$311,364	−$51,636
30%	$308,883	−$54,117

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

0.576x

DSCR

Monthly Cash Flow

−$927/mo

Cash-on-Cash Yr 1

-10.7%

$104,428 left in deal

Acquisition Event — First Close

Hard Money Loan — 9.99% Interest-Only

Loan Amount

$369,850

Purchase (95% LTV)

$344,850

Rehab (100%)

$25,000

Loan-to-ARV

85.2%

Monthly Interest

$3,079/mo

Down Payment5% of $363,000 purchase

$18,150

Origination Fee1 pts on $369,850 loan

$3,699

Closing Costs5% of purchase

$18,150

Cash to First Close

$39,999

Holding Period — 2 Months

HML Interest9.99% IO · $3,079/mo × 2$6,158

Property Taxes$505/mo × 2$1,010

Insurance$323/mo × 2$647

Total Holding Costs$7,815

Contingency Reserve10% of rehab — held, not at first close$2,500

DSCR Refinance — Second Close

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

$325,500

−

HML Principal Payofffull IO loan balance

$369,850

−

Origination Fee1 pts on $325,500

$3,255

−

Closing Coststitle / appraisal / escrow

$6,510

Cash to Bring to Close

−$54,115

Deal Summary

Cash to First Close

$39,999

Holding Costs (2 mo)

$7,815

Contingency Reserve

$2,500

−

Cash to Bring at Refi

+$54,115

Capital Left in Deal

$104,428

Equity Position — Day 1 Post-Refi

ARV

$434,000

−

DSCR Loan Balance

$325,500

Equity in Property

$108,500 (25.0%)

−

Capital Left in Deal

$104,428

Value Created

$4,072

$108,500 equity on $104,428 deployed = 1.0× equity leverage

Monthly Income & Expenses — Post-DSCR

Gross Rent

$2,373

−

Property Taxes

$505

−

Insurance

$323

−

Maintenance (6% rent)

$142

−

Management (6% rent)

$142

OpEx Subtotal

$1,113

Net Operating Income

$1,260

−

DSCR P&I

$2,187/mo

Net Cash Flow

−$927/mo

DSCR Ratios — Cash-Out vs No Cash-Out

Cash-Out Refi

75% of ARV — full LTV

Loan Amount$325,500

Monthly P&I$2,187/mo

Net Cash Flow−$927/mo

Cash Still Required−$54,115

DSCR

0.576x✗ Fail

Lender DSCR

0.787x✗ Fail

No Cash-Out

75.0% LTV — capped short $54,115

Loan Amount$325,500

Monthly P&I$2,187/mo

Net Cash Flow−$927/mo

Cash Still Required−$54,115

DSCR

0.576x✗ Fail

Lender DSCR

0.787x✗ Fail

Required Rent by DSCR Target

Target	Rent Needed	vs Current
1.00x	$3,427/mo	+$1,054 needed
1.10x	$3,676/mo	+$1,303 needed
1.20x	$3,924/mo	+$1,551 needed
1.30x ←	$4,173/mo	+$1,800 needed
1.40x	$4,421/mo	+$2,048 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

0.646x

DSCR

Cash to Close

$126,962

single close · no bridge

Monthly Cash Flow

−$692/mo

Cash-on-Cash Yr 1

-6.5%

Acquisition — Single Close

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

Loan Amount

$290,400

LTV (80% of ARV)

66.9%

Monthly P&I

$1,952/mo

Equity at Close

$72,600

Down Payment20.0% of $363,000 purchase

$72,600

Origination Fee1 pts on $290,400

$2,904

DSCR Closing Coststitle / appraisal / escrow

$5,808

Acquisition Closing5% of purchase

$18,150

Rehab Budgetcash, not financed by DSCR loan

$25,000

Contingency Reserve10% of rehab$2,500

Total Cash to Close

$126,962

Equity Position — Day 1 Post-Refi

Property Value

$434,000

−

DSCR Loan Balance

$290,400

Equity in Property

$143,600 (33.1%)

−

Capital Left in Deal

$126,962

Value Created

$16,638

$143,600 equity on $126,962 deployed = 1.1× equity leverage

Monthly Income & Expenses — Post-DSCR

Gross Rent

$2,373

−

Property Taxes

$505

−

Insurance

$323

−

Maintenance (6% rent)

$142

−

Management (6% rent)

$142

OpEx Subtotal

$1,113

Net Operating Income

$1,260

−

DSCR P&I

$1,952/mo

Net Cash Flow

−$692/mo

DSCR Ratios

DSCR (NOI / Debt Service)

0.646x✗ Fail

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

0.854x✗ Fail

Required Rent by DSCR Target

Target	Rent Needed	vs Current
1.00x	$3,159/mo	+$786 needed
1.10x	$3,381/mo	+$1,008 needed
1.20x	$3,602/mo	+$1,229 needed
1.30x ←	$3,824/mo	+$1,451 needed
1.40x	$4,046/mo	+$1,673 needed