6305 Gay St, Houston, TX 77022
Houston, 77022
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Listing Agent
Marie Sandoval
(832) 680-0760mycastlerealty5@aol.com
MMX Group/6305 Gay St, Houston, TX 77022
Flip-156.4%✗
HM→DSCR0.573x✗
Cash→DSCR0.573x✗
New Deal

6305 Gay St, Houston, TX 77022

4bd / 2ba · 1,788 sqft · built 1940 · Single FamilyAnalyzed Jul 30, 2026
DSCR
0.543x
FAIL
NOI ÷ debt service
Lender DSCR
0.788x
FAIL
EGI ÷ P&I+tax+ins+HOA
Monthly Cash Flow
−$897/mo
FAIL
post all expenses · day 1
Cash to Close
$127,510
80% LTV · single close
Value Generated
$21,000
ARV − purchase − rehab
Starting Equity %
20.9%
ARV − DSCR loan ÷ ARV, day 1
$
$
$
$
$
$
Scenario 1 — Flip
Hard money loan · sell at ARV after rehab
❌
FAILS FLIP
Min 20% ROI · 6-mo hold
-156.4%
Flip ROI
Cash to First Close
$40,218
what you bring day 1
Net Profit
−$104,856
Max Bid @ 20%
$261,651
−$104,856 profit  ÷  $67,051 total invested  =  -156.4%
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$371,750
Purchase (95% LTV)
$346,750
Rehab (100%)
$25,000
Loan-to-ARV
100.7%
Monthly Interest
$3,095/mo
Down Payment5% of $365,000 purchase
$18,250
+
Origination Fee1 pts on $371,750 loan
$3,718
+
Closing Costs5% of purchase
$18,250
=
Cash to First Close
$40,218
Holding Period — 6 Months
HML Interest9.99% IO · $3,095/mo × 6$18,569
Property Taxes$636/mo × 6$3,815
Insurance$325/mo × 6$1,950
Total Holding Costs$24,334
Contingency Reserve10% of rehab — held, not at first close$2,500
Sale Event — Second Close
Sale Price (ARV)
$369,000
−
HML Principal Payofffull IO loan balance
$371,750
−
Closing Costs3.5% of sale price
$12,915
−
Realtor Commission6% of sale price
$22,140
=
Net Proceeds to You
−$37,805
Deal Summary
Net Proceeds at Closing
−$37,805
−
Cash to First Close
$40,218
−
Holding Costs (6 mo)
$24,334
−
Contingency Reserve
$2,500
=
NET PROFIT
−$104,856
Max Bid by ROI Target
ROIMax Bidvs Offer
10%$266,111−$98,889
15%$263,865−$101,135
20% ←$261,651−$103,349
25%$259,468−$105,532
30%$257,316−$107,684
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
0.543x
DSCR
Cash to Close
$127,510
single close · no bridge
Monthly Cash Flow
−$897/mo
Cash-on-Cash Yr 1
-8.4%
Acquisition — Single Close
DSCR Purchase Loan — 7.1% / 30yr · Minimal Rehab · No Bridge
Loan Amount
$292,000
LTV (80% of ARV)
79.1%
Monthly P&I
$1,962/mo
Equity at Close
$73,000
Down Payment20.0% of $365,000 purchase
$73,000
+
Origination Fee1 pts on $292,000
$2,920
+
DSCR Closing Coststitle / appraisal / escrow
$5,840
+
Acquisition Closing5% of purchase
$18,250
+
Rehab Budgetcash, not financed by DSCR loan
$25,000
Contingency Reserve10% of rehab$2,500
=
Total Cash to Close
$127,510
Equity Position — Day 1 Post-Refi
Property Value
$369,000
−
DSCR Loan Balance
$292,000
=
Equity in Property
$77,000 (20.9%)
−
Capital Left in Deal
$127,510
=
Value Created
−$50,510
$77,000 equity on $127,510 deployed = 0.6× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$2,302
−
Property Taxes
$636
−
Insurance
$325
−
Maintenance (6% rent)
$138
−
Management (6% rent)
$138
=
OpEx Subtotal
$1,237
=
Net Operating Income
$1,065
−
DSCR P&I
$1,962/mo
=
Net Cash Flow
−$897/mo
DSCR Ratios
DSCR (NOI / Debt Service)
0.543x✗ Fail
Lender DSCR (EGI / P&I+tax+ins+HOA)
0.788x✗ Fail
Required Rent by DSCR Target
TargetRent Neededvs Current
1.00x$3,322/mo+$1,020 needed
1.10x$3,545/mo+$1,243 needed
1.20x$3,768/mo+$1,466 needed
1.30x ←$3,991/mo+$1,689 needed
1.40x$4,214/mo+$1,912 needed