Cash Purchase
All-in · No debt service · Maximum cash flow
Purchase price$280,000
Closing costs (~2%)$5,600
Reserves / misc$2,000
Total cash needed$287,600
Your $60K covers21% of total
Requires ~$228K additional capital from partners or private money. Best path if you have a capital partner.
Hard Money Loan
$220K loan · 2.5 pts + $1,500 + 10%/yr interest
Purchase price$280,000
Down payment (21.4%)$60,000
HML loan amount$220,000
Origination (2.5 pts)$5,500
HML closing fee$1,500
Closing costs (~2%)$5,600
Total cash to close$72,600
Your $60K covers ~83% of cash to close. Gap ~$12,600 — negotiate seller concession (seller offering up to $5K) or bridge the difference.
Step 01
Purchase
$280K purchase
$60K down
$220K HML
Tenant stays in place
›
Step 02
Stabilize & Hold
Collect $2,450/mo rent
Service HML interest
Keep tenant / re-lease
Market-rate lease
›
Step 03
DSCR Refi
Refi at 7%, 30 yr
75% LTV = $210K
Pay off HML
Lock permanent rate
›
Step 04
Final Position
~$70K equity at close
Long-term hold
Appreciation + paydown
Estimate — subject to change
Cash Purchase
Purchase$280,000
Closing costs$5,600
Reserves$2,000
$287,600
Total Cash Required
Hard Money Loan
Down payment$60,000
HML fees (pts + flat)$7,000
Closing costs$5,600
$72,600
Total Cash to Close
Gross rent$2,450
Property tax (2.03% / 12)−$473
Insurance−$150
CapEx reserve (5%)−$123
Vacancy reserve (5%)−$123
Property mgmt (10%)−$245
Debt service$0
$1,336 / mo
Cash-on-cash on $287,600: 5.6%
Gross rent$2,450
Property tax (2.03% / 12)−$473
Insurance−$150
CapEx reserve (5%)−$123
Vacancy reserve (5%)−$123
Property mgmt (10%)−$245
DSCR P&I ($210K, 7%, 30yr)−$1,397
−$61 / mo
DSCR ratio: 0.96x · Borderline — equity play
⚠ Tight margins. Push rent to $2,550+ for positive cash flow. At $2,550: +$0/mo breakeven.
HML interest / mo
$1,833
$220K × 10% ÷ 12
Net during HML hold
−$448 / mo
rent minus all expenses + HML
Target refi window
6 months
Max bridge burn ~$2,688
| Year |
Est. Value (3% growth) |
Loan Balance |
Equity |
Return on $60K |
| At Purchase | $280,000 | $210,000 | $70,000 | +17% |
| Year 1 | $288,400 | $207,200 | $81,200 | +35% |
| Year 2 | $297,052 | $204,200 | $92,852 | +55% |
| Year 3 | $305,964 | $201,000 | $104,964 | +75% |
| Year 4 | $315,143 | $197,600 | $117,543 | +96% |
| Year 5 | $324,597 | $194,000 | $130,597 | +118% |
* Estimates only — subject to market conditions, actual rent, and lender terms. Assumes 3% annual appreciation and standard DSCR amortization. Final position labeled as estimate, subject to change.
$2,450
Est. Market Rent
4 BD / 2,900+ sqft
2.03%
Harris County
Property Tax Rate
$339K
List Price
(You're at $280K)
$96/sqft
Your Purchase
Price per Sqft
Cy-Fair ISD
School District
Rated B
Ready to move forward? $59K under ask with a tenant in place and a clear path to DSCR refi. The equity position from day one makes this a strong buy-and-hold play.
View Full Listing ↗