Deal Breakdown: Texas 4-Plex DSCR Buy & Hold — $210k purchase, 1.35 DSCR

We targeted a secondary Texas market 35 minutes from Austin with strong job growth in logistics and data centers. The 4-plex (two 2/1s and two 1/1s) was owned by an out-of-state landlord who wanted to exit after 12 years. Asking $229k.

First stop: Deal Analyzer. Address lookup pulled recent rents and tax history. We modeled $1,650/mo total gross rent (conservative vs current $1,720 actual), 8% vacancy, 8% management, $420/mo taxes/insurance, $280 maintenance. Purchase price tested at $210k with 20% down produced 9.8% cash-on-cash at 7.4% interest — right at our buy-box floor.

We also ran the DSCR Calculator on the same inputs. At 20% down the DSCR was 1.38 on the proposed 30-year loan. The lender's minimum was 1.25, so we had 0.13x cushion. Raising the price to $225k dropped DSCR to 1.29 — still acceptable but thinner. We offered $210k with a 14-day inspection contingency.

Neighborhood Heatmaps confirmed the sub-market had 11% rent growth over 24 months and low crime relative to the metro. The Deal Analyzer's 5-year projection showed $48k in equity build even with flat appreciation.

Because the buyer was an LLC with three other financed properties, conventional was off the table. We used a DSCR lender who quoted 7.125% 30-year, 1.5 points, no prepay after 12 months, 80% LTV max on purchase.

Cash to close modeled in the Cash-on-Cash Calculator and DSCR Calculator: 20% down ($42k), 1.5 pts ($3,150), $2,800 closing costs, $4,000 initial reserves = $51,950 total cash. The DSCR Calculator's 'what if rates rise' table showed that even at 8.25% the DSCR stayed above 1.20 — our personal stress test.

We also compared a 15% down option (higher rate 7.5%, same LTV limit? No, 80% max anyway). The calculator proved the extra $10.5k down only saved $68/mo in payment and improved DSCR by 0.04x — not worth tying up the extra capital. 20% was the sweet spot.

The lender required 3 months PITIA in reserves post-close, which the Cash-on-Cash tool helped us verify we could meet without dipping into the operating account.

Inspection revealed deferred carpet, one HVAC needing replacement, and minor plumbing. We negotiated $6k seller credit and still closed on time. Rehab was $18,400 total: new HVAC $5,800, LVP in common areas and two units $7,200, exterior paint + landscaping $3,100, misc $2,300.

All numbers were built in the Rehab Estimator, then the totals were entered into the Deal Analyzer's 'post-rehab' scenario so we could see the lift in NOI and DSCR after the $18k spend. The light value-add raised effective gross income by $240/mo and pushed DSCR to 1.42.

Because this was a buy-and-hold, not a flip or BRRRR, we skipped heavy cosmetic work. The Fix & Flip Calculator confirmed that full-gut scope would have required $47k and only added $28k to ARV — negative ROI for a hold. The Rehab Estimator's 'hold vs flip' toggle made the decision obvious in five minutes.

All four units were occupied at closing. We raised rents $75-100/unit on turnover over the first 9 months, reaching $1,920/mo gross. Vacancy ran 5% actual vs 8% modeled. Cash flow after all expenses and the $1,412 P&I is $610/mo — 14.3% cash-on-cash on the $51,950 invested.

We periodically re-run the property in the Deal Analyzer and DSCR Calculator to watch the DSCR improve as rents rise and principal pays down. At month 18 the DSCR is 1.51 and we have $7,200 in equity from paydown alone.

Exit decision: the calculators showed that selling today would net ~$38k after costs (ARV modeled $265k), but that capital would be hard to redeploy at the same 14%+ cash-on-cash in the current rate environment. Keeping the asset and harvesting the cash flow (plus the DSCR loan is assumable in some cases) wins on both return and tax deferral.

The series takeaway: not every deal needs a refi or a flip. The Deal Analyzer + DSCR Calculator together told us this was a 'set it and collect' asset. We still track it monthly in the platform portfolio dashboard.