MMX Group/806 Cascade Creek Dr, Katy, TX 77450
Flip41.3%
HM→DSCR1.103x
Cash→DSCR1.103x
New Deal

806 Cascade Creek Dr, Katy, TX 77450

4bd / 2.5ba · 1,739 sqft · built 1978 · Single Family (SFR)Analyzed Aug 26, 2026MX Group Partner
Flip ROI
41.3%
PASS
+$15,274 profit
6-mo hold · profit ÷ cash out
DSCR — 75% LTV
1.103x
FAIL
cash-out refi · NOI / debt service
DSCR — No Cash-Out
1.123x
FAIL
73.7% LTV · HML payoff refi
Max Bid @ 20%
$199,945
PASS
✓ offer $192,500 under max
Total Invested
$27,742
down + points + costs + holding, pre-refi
Cash Left in Deal
$24,305
after HM → DSCR cash-out refi
Value Generated
$68,750
ARV − purchase − rehab (instant equity)
Starting Equity %
25.0%
ARV − DSCR loan ÷ ARV, day 1 post-refi
$
$
$
$
$
$
Scenario 1 — Flip
Hard money loan · sell at ARV after rehab
PASSES FLIP
Min 20% ROI · 6-mo hold
41.3%
Flip ROI
Cash to First Close
$21,750
what you bring day 1
Net Profit
$15,274
Max Bid @ 20%
$199,945
$15,274 profit  ÷  $36,976 total invested  =  41.3%
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$196,625
Purchase (95% LTV)
$182,875
Rehab (100%)
$13,750
Loan-to-ARV
71.5%
Monthly Interest
$1,637/mo
Down Payment5% of $192,500 purchase
$9,625
+
Origination Fee1 pts on $196,625 loan
$2,500
+
Closing Costs5% of purchase
$9,625
=
Cash to First Close
$21,750
Holding Period — 6 Months
HML Interest9.99% IO · $1,637/mo × 6$9,821
Property Taxes$500/mo × 6$2,999
Insurance$172/mo × 6$1,031
Total Holding Costs$13,851
Contingency Reserve10% of rehab — held, not at first close$1,375
Sale Event — Second Close
Sale Price (ARV)
$275,000
HML Principal Payofffull IO loan balance
$196,625
Closing Costs3.5% of sale price
$9,625
Realtor Commission6% of sale price
$16,500
=
Net Proceeds to You
$52,250
Deal Summary
Net Proceeds at Closing
$52,250
Cash to First Close
$21,750
Holding Costs (6 mo)
$13,851
Contingency Reserve
$1,375
=
NET PROFIT
$15,274
Max Bid by ROI Target
ROIMax Bidvs Offer
10%$203,282✓ ok
15%$201,601✓ ok
20%$199,945✓ ok
25%$198,311✓ ok
30%$196,701✓ 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
1.103x
DSCR
Monthly Cash Flow
$143/mo
Cash-on-Cash Yr 1
7.1%
$24,305 left in deal
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$196,625
Purchase (95% LTV)
$182,875
Rehab (100%)
$13,750
Loan-to-ARV
71.5%
Monthly Interest
$1,637/mo
Down Payment5% of $192,500 purchase
$9,625
+
Origination Fee1 pts on $196,625 loan
$2,500
+
Closing Costs5% of purchase
$9,625
=
Cash to First Close
$21,750
Holding Period — 2 Months
HML Interest9.99% IO · $1,637/mo × 2$3,274
Property Taxes$500/mo × 2$1,000
Insurance$172/mo × 2$344
Total Holding Costs$4,617
Contingency Reserve10% of rehab — held, not at first close$1,375
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$206,250
HML Principal Payofffull IO loan balance
$196,625
Origination Fee1 pts on $206,250
$2,063
Closing Coststitle / appraisal / escrow
$4,125
=
Cash Back to You
+$3,438
Deal Summary
Cash to First Close
$21,750
+
Holding Costs (2 mo)
$4,617
+
Contingency Reserve
$1,375
Cash Back at Refi
−$3,438
=
Capital Left in Deal
$24,305
Equity Position — Day 1 Post-Refi
ARV
$275,000
DSCR Loan Balance
$206,250
=
Equity in Property
$68,750 (25.0%)
Capital Left in Deal
$24,305
=
Value Created
$44,445
$68,750 equity on $24,305 deployed = 2.8× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$2,501
Property Taxes
$500
Insurance
$172
Maintenance (6% rent)
$150
Management (6% rent)
$150
=
OpEx Subtotal
$972
=
Net Operating Income
$1,529
DSCR P&I
$1,386/mo
=
Net Cash Flow
$143/mo
DSCR Ratios — Cash-Out vs No Cash-Out vs DSCR=1.0
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$206,250
Monthly P&I$1,386/mo
Net Cash Flow$143/mo
Cash Back at Refi+$3,438
DSCR
1.103x✗ Fail
Lender DSCR
1.215x✓ Pass
No Cash-Out
73.7% LTV — breakeven refi
Loan Amount$202,706
Monthly P&I$1,362/mo
Net Cash Flow$167/mo
Cash Back at Refi+$0
DSCR
1.123x✗ Fail
Lender DSCR
1.230x✓ Pass
DSCR = 1.00x
Not DSCR-constrained — the 75% ARV cash-out loan already clears 1.103xx.
Required Rent by DSCR Target
TargetRent Neededvs Current
1.00x$2,338/mo✓ met
1.10x$2,496/mo✓ met
1.20x$2,653/mo+$152 needed
1.30x$2,811/mo+$310 needed
1.40x$2,968/mo+$467 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
1.103x
DSCR
Monthly Cash Flow
$143/mo
Cash-on-Cash Yr 1
9.3%
$18,531 left in deal
Acquisition Event — First Close
Purchase Price
$192,500
+
Rehab Budget
$13,750
+
Closing Costs5% of purchase
$9,625
=
Total Cash to First Close
$215,875
Holding Period — 2 Months
Property Taxes$500/mo × 2$1,000
Insurance$172/mo × 2$344
Total Holding Costs$1,343
Contingency Reserve10% of rehab — held, not at first close$1,375
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$206,250
Origination Fee1 pts on $206,250
$2,063
Closing Coststitle / appraisal / escrow
$4,125
=
Net Cash Recovered
$200,063
Deal Summary
Total Cash to First Close
$215,875
+
Holding Costs (2 mo)
$1,343
+
Contingency Reserve
$1,375
Net Cash Recovered at Refi
$200,063
=
Capital Left in Deal
$18,531
Equity Position — Day 1 Post-Refi
ARV
$275,000
DSCR Loan Balance
$206,250
=
Equity in Property
$68,750 (25.0%)
Capital Left in Deal
$18,531
=
Value Created
$50,219
$68,750 equity on $18,531 deployed = 3.7× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$2,501
Property Taxes
$500
Insurance
$172
Maintenance (6% rent)
$150
Management (6% rent)
$150
=
OpEx Subtotal
$972
=
Net Operating Income
$1,529
DSCR P&I
$1,386/mo
=
Net Cash Flow
$143/mo
DSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$206,250
Monthly P&I$1,386/mo
Net Cash Flow$143/mo
Cash Still Required−$18,531
DSCR
1.103x✗ Fail
Lender DSCR
1.215x✓ Pass
No Cash-Out
75.0% LTV — capped short $18,531
Loan Amount$206,250
Monthly P&I$1,386/mo
Net Cash Flow$143/mo
Cash Still Required−$18,531
DSCR
1.103x✗ Fail
Lender DSCR
1.215x✓ Pass
Required Rent by DSCR Target
TargetRent Neededvs Current
1.00x$2,338/mo✓ met
1.10x$2,496/mo✓ met
1.20x$2,653/mo+$152 needed
1.30x$2,811/mo+$310 needed
1.40x$2,968/mo+$467 needed
30-Year Hold Projection
Click to expand
DSCR loan $206,250 @ 7.1% · 3% rent growth · Via Hard Money · Via All Cash (same DSCR loan)