8407 Sterlingshire St, Houston, TX 77078
6bd / 2.5ba · 3,136 sqft · built 1973 · 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
72.6%
Flip ROI
Cash to First Close
$22,100
what you bring day 1
Net Profit
$27,060
Max Bid @ 20%
$213,651
$27,060 profit ÷ $37,255 total invested = 72.6%
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$200,850
Purchase (95% LTV)
$186,200
Rehab (100%)
$14,650
Loan-to-ARV
68.5%
Monthly Interest
$1,672/mo
Down Payment5% of $196,000 purchase
$9,800+
Origination Fee1 pts on $200,850 loan
$2,500+
Closing Costs5% of purchase
$9,800=
Cash to First Close
$22,100Holding Period — 6 Months
HML Interest9.99% IO · $1,672/mo × 6$10,032
Property Taxes$401/mo × 6$2,407
Insurance$176/mo × 6$1,053
HOA$33/mo × 6$198
Total Holding Costs$13,690
Contingency Reserve10% of rehab — held, not at first close$1,465
Sale Event — Second Close
Sale Price (ARV)
$293,000−
HML Principal Payofffull IO loan balance
$200,850−
Closing Costs3.5% of sale price
$10,255−
Realtor Commission6% of sale price
$17,580=
Net Proceeds to You
$64,315Deal Summary
Net Proceeds at Closing
$64,315−
Cash to First Close
$22,100−
Holding Costs (6 mo)
$13,690−
Contingency Reserve
$1,465=
NET PROFIT
$27,060Max Bid by ROI Target
| ROI | Max Bid | vs Offer |
|---|---|---|
| 10% | $217,163 | ✓ ok |
| 15% | $215,394 | ✓ ok |
| 20% ← | $213,651 | ✓ ok |
| 25% | $211,932 | ✓ ok |
| 30% | $210,237 | ✓ 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
0.949x
DSCR
Monthly Cash Flow
−$76/mo
Cash-on-Cash Yr 1
-5.7%
$15,821 left in deal
Acquisition Event — First Close
Hard Money Loan — 9.99% Interest-Only
Loan Amount
$200,850
Purchase (95% LTV)
$186,200
Rehab (100%)
$14,650
Loan-to-ARV
68.5%
Monthly Interest
$1,672/mo
Down Payment5% of $196,000 purchase
$9,800+
Origination Fee1 pts on $200,850 loan
$2,500+
Closing Costs5% of purchase
$9,800=
Cash to First Close
$22,100Holding Period — 2 Months
HML Interest9.99% IO · $1,672/mo × 2$3,344
Property Taxes$401/mo × 2$802
Insurance$176/mo × 2$351
HOA$33/mo × 2$66
Total Holding Costs$4,563
Contingency Reserve10% of rehab — held, not at first close$1,465
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$219,750−
HML Principal Payofffull IO loan balance
$200,850−
Origination Fee1 pts on $219,750
$2,198−
Closing Coststitle / appraisal / escrow
$4,395=
Cash Back to You
+$12,308Deal Summary
Cash to First Close
$22,100+
Holding Costs (2 mo)
$4,563+
Contingency Reserve
$1,465−
Cash Back at Refi
−$12,308=
Capital Left in Deal
$15,821Equity Position — Day 1 Post-Refi
ARV
$293,000−
DSCR Loan Balance
$219,750=
Equity in Property
$73,250 (25.0%)−
Capital Left in Deal
$15,821=
Value Created
$57,429$73,250 equity on $15,821 deployed = 4.6× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$2,285−
Property Taxes
$401−
Insurance
$176−
Maintenance (6% rent)
$137−
Management (6% rent)
$137−
HOA
$33=
OpEx Subtotal
$884=
Net Operating Income
$1,401−
DSCR P&I
$1,477/mo=
Net Cash Flow
−$76/moDSCR Ratios — Cash-Out vs No Cash-Out vs DSCR=1.0
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$219,750
Monthly P&I$1,477/mo
Net Cash Flow−$76/mo
Cash Back at Refi+$12,308
DSCR
0.949x✗ Fail
Lender DSCR
1.095x✓ Pass
No Cash-Out
70.7% LTV — breakeven refi
Loan Amount$207,062
Monthly P&I$1,392/mo
Net Cash Flow$10/mo
Cash Back at Refi+$0
DSCR
1.007x✗ Fail
Lender DSCR
1.142x✓ Pass
DSCR = 1.00x
71.2% LTV — max loan at breakeven
Loan Amount$208,498
Monthly P&I$1,401/mo
Net Cash Flow$0/mo
Cash Back at Refi+$1,393
DSCR
1.000x✗ Fail
Lender DSCR
1.136x✓ Pass
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $2,371/mo | +$86 needed |
| 1.10x | $2,539/mo | +$254 needed |
| 1.20x | $2,707/mo | +$422 needed |
| 1.30x ← | $2,874/mo | +$589 needed |
| 1.40x | $3,042/mo | +$757 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
0.949x
DSCR
Monthly Cash Flow
−$76/mo
Cash-on-Cash Yr 1
-9.1%
$9,977 left in deal
Acquisition Event — First Close
Purchase Price
$196,000+
Rehab Budget
$14,650+
Closing Costs5% of purchase
$9,800=
Total Cash to First Close
$220,450Holding Period — 2 Months
Property Taxes$401/mo × 2$802
Insurance$176/mo × 2$351
HOA$33/mo × 2$66
Total Holding Costs$1,219
Contingency Reserve10% of rehab — held, not at first close$1,465
DSCR Refinance — Second Close
DSCR Loan Proceeds75% of ARV · 7.1% / 30yr
$219,750−
Origination Fee1 pts on $219,750
$2,198−
Closing Coststitle / appraisal / escrow
$4,395=
Net Cash Recovered
$213,158Deal Summary
Total Cash to First Close
$220,450+
Holding Costs (2 mo)
$1,219+
Contingency Reserve
$1,465−
Net Cash Recovered at Refi
$213,158=
Capital Left in Deal
$9,977Equity Position — Day 1 Post-Refi
ARV
$293,000−
DSCR Loan Balance
$219,750=
Equity in Property
$73,250 (25.0%)−
Capital Left in Deal
$9,977=
Value Created
$63,273$73,250 equity on $9,977 deployed = 7.3× equity leverage
Monthly Income & Expenses — Post-DSCR
Gross Rent
$2,285−
Property Taxes
$401−
Insurance
$176−
Maintenance (6% rent)
$137−
Management (6% rent)
$137−
HOA
$33=
OpEx Subtotal
$884=
Net Operating Income
$1,401−
DSCR P&I
$1,477/mo=
Net Cash Flow
−$76/moDSCR Ratios — Cash-Out vs No Cash-Out
Cash-Out Refi
75% of ARV — full LTV
Loan Amount$219,750
Monthly P&I$1,477/mo
Net Cash Flow−$76/mo
Cash Still Required−$9,977
DSCR
0.949x✗ Fail
Lender DSCR
1.095x✓ Pass
No Cash-Out
75.0% LTV — capped short $9,977
Loan Amount$219,750
Monthly P&I$1,477/mo
Net Cash Flow−$76/mo
Cash Still Required−$9,977
DSCR
0.949x✗ Fail
Lender DSCR
1.095x✓ Pass
Required Rent by DSCR Target
| Target | Rent Needed | vs Current |
|---|---|---|
| 1.00x | $2,371/mo | +$86 needed |
| 1.10x | $2,539/mo | +$254 needed |
| 1.20x | $2,707/mo | +$422 needed |
| 1.30x ← | $2,874/mo | +$589 needed |
| 1.40x | $3,042/mo | +$757 needed |