1616 2nd St, League City, TX 77573
1,426 sqft · built 1964 · Single Family (SFR)Analyzed Oct 25, 2026MX Group Partner$
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Scenario 1 — Flip
Hard money loan · sell at ARV after rehab
✅
PASSES FLIP
Min 20% ROI · 6-mo hold
35.4%
Flip ROI
Cash to First Close
$19,160
what you bring day 1
Net Profit
$11,370
Max Bid @ 20%
$171,757
$11,370 profit ÷ $32,140 total invested = 35.4%
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$170,070
Purchase (95% LTV)
$158,270
Rehab (100%)
$11,800
Loan-to-ARV
72.1%
Monthly Interest
$1,416/mo
Down Payment5% of $166,600 purchase
$8,330+
Origination Fee1 pts on $170,070 loan
$2,500+
Closing Costs5% of purchase
$8,330=
Cash to First Close
$19,160Holding Period — 6 Months
HML Interest9.99% IO · $1,416/mo × 6$8,495
Property Taxes$402/mo × 6$2,413
Insurance$149/mo × 6$892
Total Holding Costs$11,800
Contingency Reserve10% of rehab — held, not at first close$1,180
Sale Event — Second Close
Sale Price (ARV)
$236,000−
HML Principal Payofffull IO loan balance
$170,070−
Closing Costs3.5% of sale price
$8,260−
Realtor Commission6% of sale price
$14,160=
Net Proceeds to You
$43,510Deal Summary
Net Proceeds at Closing
$43,510−
Cash to First Close
$19,160−
Holding Costs (6 mo)
$11,800−
Contingency Reserve
$1,180=
NET PROFIT
$11,370Max Bid by ROI Target
| ROI | Max Bid | vs Offer |
|---|---|---|
| 10% | $174,609 | ✓ ok |
| 15% | $173,173 | ✓ ok |
| 20% ← | $171,757 | ✓ ok |
| 25% | $170,361 | ✓ ok |
| 30% | $168,984 | ✓ 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
1.039x
DSCR
Monthly Cash Flow
$46/mo
Cash-on-Cash Yr 1
2.4%
$22,653 left in deal
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$170,070
Purchase (95% LTV)
$158,270
Rehab (100%)
$11,800
Loan-to-ARV
72.1%
Monthly Interest
$1,416/mo
Down Payment5% of $166,600 purchase
$8,330+
Origination Fee1 pts on $170,070 loan
$2,500+
Closing Costs5% of purchase
$8,330=
Cash to First Close
$19,160Holding Period — 2 Months
HML Interest9.99% IO · $1,416/mo × 2$2,832
Property Taxes$402/mo × 2$804
Insurance$149/mo × 2$297
Total Holding Costs$3,933
Contingency Reserve10% of rehab — held, not at first close$1,180
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$177,000−
HML Principal Payofffull IO loan balance
$170,070−
Origination Fee1 pts on $177,000
$1,770−
Closing Coststitle / appraisal / escrow
$3,540=
Cash Back to You
+$1,620Deal Summary
Cash to First Close
$19,160+
Holding Costs (2 mo)
$3,933+
Contingency Reserve
$1,180−
Cash Back at Refi
−$1,620=
Capital Left in Deal
$22,653Equity Position — Day 1 Post-Refi
ARV
$236,000−
DSCR Loan Balance
$177,000=
Equity in Property
$59,000 (25.0%)−
Capital Left in Deal
$22,653=
Value Created
$36,347$59,000 equity on $22,653 deployed = 2.6× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$2,030−
Property Taxes
$402−
Insurance
$149−
Maintenance (6% rent)
$122−
Management (6% rent)
$122=
OpEx Subtotal
$794=
Net Operating Income
$1,236−
DSCR P&I
$1,189/mo=
Net Cash Flow
$46/moDSCR Ratios — Cash-Out vs No Cash-Out vs DSCR=1.0
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$177,000
Monthly P&I$1,189/mo
Net Cash Flow$46/mo
Cash Back at Refi+$1,620
DSCR
1.039x✗ Fail
Lender DSCR
1.166x✓ Pass
No Cash-Out
74.3% LTV — breakeven refi
Loan Amount$175,330
Monthly P&I$1,178/mo
Net Cash Flow$57/mo
Cash Back at Refi+$0
DSCR
1.049x✗ Fail
Lender DSCR
1.174x✓ Pass
DSCR = 1.00x
Not DSCR-constrained — the 75% ARV cash-out loan already clears 1.039xx.
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $1,978/mo | ✓ met |
| 1.10x | $2,113/mo | +$83 needed |
| 1.20x | $2,248/mo | +$218 needed |
| 1.30x ← | $2,383/mo | +$353 needed |
| 1.40x | $2,518/mo | +$488 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
1.039x
DSCR
Monthly Cash Flow
$46/mo
Cash-on-Cash Yr 1
3.2%
$17,322 left in deal
Acquisition Event — First Close
Purchase Price
$166,600+
Rehab Budget
$11,800+
Closing Costs5% of purchase
$8,330=
Total Cash to First Close
$186,730Holding Period — 2 Months
Property Taxes$402/mo × 2$804
Insurance$149/mo × 2$297
Total Holding Costs$1,102
Contingency Reserve10% of rehab — held, not at first close$1,180
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$177,000−
Origination Fee1 pts on $177,000
$1,770−
Closing Coststitle / appraisal / escrow
$3,540=
Net Cash Recovered
$171,690Deal Summary
Total Cash to First Close
$186,730+
Holding Costs (2 mo)
$1,102+
Contingency Reserve
$1,180−
Net Cash Recovered at Refi
$171,690=
Capital Left in Deal
$17,322Equity Position — Day 1 Post-Refi
ARV
$236,000−
DSCR Loan Balance
$177,000=
Equity in Property
$59,000 (25.0%)−
Capital Left in Deal
$17,322=
Value Created
$41,678$59,000 equity on $17,322 deployed = 3.4× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$2,030−
Property Taxes
$402−
Insurance
$149−
Maintenance (6% rent)
$122−
Management (6% rent)
$122=
OpEx Subtotal
$794=
Net Operating Income
$1,236−
DSCR P&I
$1,189/mo=
Net Cash Flow
$46/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$177,000
Monthly P&I$1,189/mo
Net Cash Flow$46/mo
Cash Still Required−$17,322
DSCR
1.039x✗ Fail
Lender DSCR
1.166x✓ Pass
No Cash-Out
75.0% LTV — capped short $17,322
Loan Amount$177,000
Monthly P&I$1,189/mo
Net Cash Flow$46/mo
Cash Still Required−$17,322
DSCR
1.039x✗ Fail
Lender DSCR
1.166x✓ Pass
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $1,978/mo | ✓ met |
| 1.10x | $2,113/mo | +$83 needed |
| 1.20x | $2,248/mo | +$218 needed |
| 1.30x ← | $2,383/mo | +$353 needed |
| 1.40x | $2,518/mo | +$488 needed |