HML Fees & Close
$10,350
2.5 pts + $1,500 + closing
Carry Cost
$5,250
3 months HML interest
Refi Gap
$30,000
HML $210K − refi $180K
Equity Buydown
$14,400
Lowers loan, builds equity
Total Deployed
$60,000
$0 left over · all in
Cash Purchase
All-in including rehab · No debt service
Purchase price$180,000
Rehab budget$30,000
Closing costs (~2%)$3,600
Total cash needed$213,600
Your $60K covers28% of total
Requires ~$153K additional capital. Best with a capital partner — no debt service, maximum cash flow post-rehab.
Hard Money Loan
$210K HML · refi to $180K DSCR · $60K all-in
Purchase price$180,000
Rehab draw$30,000
HML total loan$210,000
Origination (2.5 pts)−$5,250
HML flat fee + closing−$5,100
Carry (3 mo @ 10%/yr)−$5,250
Refi gap + equity buydown−$44,400
Total deployed$60,000
$60K covers all costs and buys the loan down to $180K — locking in $75,000 in equity at the refi.
Step 01
Purchase
$180K price
$210K HML
$10,350 in fees
Off-market deal
›
Step 02
Rehab
$30K HML draw
60–90 day timeline
Kitchen / baths
Floors / paint / mech
›
Step 03
DSCR Refi
$180K loan target
$44,400 from capital
HML fully paid off
70.6% LTV
›
Step 04
Final Position
$75,000 equity
$60K fully deployed
Long-term hold
Estimate — subject to change
Cash Purchase
Purchase$180,000
Rehab$30,000
Closing costs$3,600
$213,600
Total Cash Required
Hard Money Loan
HML fees & closing$10,350
Carry (3 months)$5,250
Refi gap ($210K − $180K)$30,000
Equity buydown$14,400
$60,000
Total Deployed · All In
Gross rent$1,950
Property tax (2.03% of $255K / 12)−$431
Insurance−$120
CapEx reserve (5%)−$98
Vacancy reserve (5%)−$98
Property mgmt (10%)−$195
DSCR P&I ($180K, 7%, 30yr)−$1,198
Net monthly cash flow
−$190 / mo
DSCR ratio 0.84x
Annual CF −$2,280
CoC on $60K −3.8%
⚠ Cash flow is negative at current market rent of $1,950. This is an equity acquisition — wealth is built through the $75,000 equity position at close and appreciation over time, not monthly income.
| Year |
Est. Value (3% / yr) |
DSCR Loan Balance |
Equity |
Return on $60K |
| At Refi | $255,000 | $180,000 | $75,000 | +25% |
| Year 1 | $262,650 | $178,172 | $84,478 | +41% |
| Year 2 | $270,530 | $176,211 | $94,319 | +57% |
| Year 3 | $278,645 | $174,109 | $104,537 | +74% |
| Year 4 | $287,005 | $171,854 | $115,151 | +92% |
| Year 5 | $295,615 | $169,437 | $126,178 | +110% |
* Assumes 3% annual appreciation and standard amortization on $180,000 DSCR loan at 7%, 30yr. Return % measured against $60,000 total deployed. Final position is an estimate, subject to change.
$1,950
Market Rent
3 BD / 77429
2.03%
Harris County
Property Tax Rate
$255,000
Est. ARV Post-Rehab
~$143 / sqft
$75,000
Equity at Refi
70.6% LTV
$126,178
Projected Equity
Year 5
Cy-Fair ISD
School District
Strong rental demand
$60K fully deployed — all expenses paid, loan bought down to $180K, $75,000 in equity locked in at close. Year 5 equity projects to $126K — a 110% return on capital deployed.
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