HARRIS COUNTY, HOUSTON, TX 77042

Houston, TX SFR (4 bed / 2.5 bath, 2,130 sf): ARV $701,000 with a 36% discount below ARV at a $449,000 ask. Flip spread is $140,000 with an estimated flip profit of $112,097. Flip case: Comps-backed ARV is $701,000. At $449,000, you’re buying at a 36% discount below ARV, with a projected 20% margin. The precomputed flip numbers show an estimated $112,097 profit and a 19% ROI. Rental case (secondary): Estimated market rent is $2,625/month, but the current underwriting comes in negative with -$1,304/month cash flow, a 2.9% cap rate, and -17.4% cash-on-cash return (assumptions: 20% down, 7% rate, 30yr, 35% expenses, 8% vacancy). This one pencils best as a value-add flip rather than a long-term hold at today’s pricing/terms. Condition/value-add: Major rehab with full interior work. Roof and AC are recent, and there are signs of slight foundation shifting noted as nothing major—budgeted repairs are estimated at $62,000–$112,000 as the path to the $701,000 ARV. Cash buyers or hard money preferred for a quick close.