Home / Blog / Can you still cash flow a failed flip with today's rates?
Can you still cash flow a failed flip with today's rates?
The flip penciled. The sale did not. Now the question is whether today's DSCR takeout rates let you hold the asset without bleeding cash every month - and how much cash you need at the refinance table.
That fork shows up constantly on BiggerPockets: same deal, both exits - the flip works on paper, the rental looks underwater once you model real debt service. Here is a live lender comparison on one illustrative Texas metro SFR so you can see rate, leverage, cash flow, and cash to refinance side by side.
Case study (illustrative): Purchase $183,000 | rehab $46,000 | ARV $330,000 | market rent $2,600. Taxes $6,900, insurance $3,000, and HOA $1,200/year leave about $925/month of carrying cost before debt service.
Assumed bridge payoff: Lightning Fix-style stack of 85% of purchase + 100% of rehab ~ $201,550. Est. cash to refinance = max(0, bridge - new DSCR loan) + borrower origination dollars + $3,500 other closing-cost buffer. Est. cash flow = rent - $925 TI/HOA - principal & interest (not a full P&L).
FICO 720, fully amortizing 30-year fixed, 3-2-1 prepay where shown. Quotes dated 2026-09-21. When a lender cannot clear at the target investor price, the shortfall is shown as borrower origination.
65% LTV ($214,500)
| Lender | Rate | Loan | Origination | Est. cash flow | Est. cash to refi |
|---|---|---|---|---|---|
| American Heritage | 6.750% | $214,500 | 0.000% | +$283.76/mo | $3,500 |
| Best Price Lending | 7.250% | $214,500 | 0.000% | +$211.73/mo | $3,500 |
| Acra | 7.250% | $214,500 | 0.500% | +$211.73/mo | $4,572 |
| Kiavi | 7.500% | $214,500 | 0.164% | +$175.18/mo | $3,852 |
| Visio Lending | 7.567% | $214,500 | 0.000% | +$165.33/mo | $3,500 |
| Easy Street Capital | 7.875% | $214,500 | 0.000% | +$119.73/mo | $3,500 |
Lower leverage improves coverage - every desk in this table shows positive estimated cash flow on $2,600 rent after $925 TI/HOA.
70% LTV ($231,000)
| Lender | Rate | Loan | Origination | Est. cash flow | Est. cash to refi |
|---|---|---|---|---|---|
| American Heritage | 6.750% | $231,000 | 0.125% | +$176.74/mo | $3,789 |
| Best Price Lending | 7.375% | $231,000 | 0.000% | +$79.54/mo | $3,500 |
| Acra | 7.375% | $231,000 | 0.500% | +$79.54/mo | $4,655 |
| Visio Lending | 7.667% | $231,000 | 0.000% | +$33.32/mo | $3,500 |
| Kiavi | 7.750% | $231,000 | 0.080% | +$20.09/mo | $3,685 |
| Easy Street Capital | 8.500% | $231,000 | 0.000% | -$101.19/mo | $3,500 |
75% LTV (requested $247,500)
| Lender | Rate | Loan | Origination | Est. cash flow | Est. cash to refi |
|---|---|---|---|---|---|
| American Heritage | 6.875% | $247,500 | 0.000% | +$49.10/mo | $3,500 |
| Kiavi | 7.500% | $214,500* | 0.164% | +$175.18/mo | $3,852 |
| Acra (Platinum) | 7.500% | $247,500 | 0.500% | -$55.56/mo | $4,738 |
| Best Price Lending | 7.625% | $247,500 | 0.000% | -$76.79/mo | $3,500 |
| Visio Lending | 7.817% | $247,500 | 0.000% | -$109.59/mo | $3,500 |
| Easy Street Capital | 8.875% | $247,500 | 0.000% | -$294.22/mo | $3,500 |
*Kiavi loan marked with an asterisk is capped below the requested 75% amount on this pull. Several 30-year fixed desks clear the ~$201,550 bridge at full $247,500; Easy Street Signature cash flow is negative on this rent after TI/HOA.
80% LTV (requested $264,000)
| Lender | Rate | Loan | Origination | Est. cash flow | Est. cash to refi |
|---|---|---|---|---|---|
| Easy Street Capital | 6.500% | $264,000 | 5.875% | +$6.34/mo | $19,010 |
| American Heritage | 7.125% | $264,000 | 0.000% | -$103.62/mo | $3,500 |
| Best Price Lending | 7.750% | $264,000 | 0.000% | -$216.33/mo | $3,500 |
| Kiavi | 7.750% | $214,500* | 0.000% | +$138.30/mo | $3,500 |
| Visio Lending | 8.167% | $264,000 | 0.000% | -$292.96/mo | $3,500 |
| Acra | 8.375% | $264,000 | 0.500% | -$331.59/mo | $4,820 |
Higher leverage helps refinance math but pressures coverage. Easy Street Signature 80% only clears with elevated borrower origination on this sheet. Kiavi remained capped below the requested loan amount.
What the numbers say
- At 65% LTV, multiple desks cash-flow this rent after real TI/HOA - the "failed flip can't hold" claim is leverage- and coupon-sensitive, not automatic.
- At 75-80%, several coupons push estimated cash flow negative even when the new loan clears the bridge.
- Cash to refinance is not just loan minus basis - model bridge payoff, origination, and closing costs.
- Product caps matter: Kiavi authorized less than the full LTV ask at 75% and 80% on this file.
Takeaways: A failed flip becomes a hold only if DSCR debt service fits the rent after real TI/HOA - and only if you can fund the refinance cash. Compare lenders at the same LTV before you accept "today's rates kill the deal" as settled.
One action: write ARV, rent, TI/HOA, bridge payoff, and target LTV on one page, then price the takeout across desks. Start at bestpricelending.com.
Educational only. Not a loan commitment, rate lock, or offer to lend. Live retail quotes dated 2026-09-21. Sources: Visio Lending, Easy Street Capital (Signature), Best Price Lending, Acra, American Heritage, and Kiavi. Verify current terms. Equal Housing Lender.
Price a Loan
Run a quick scenario with Best Price Lending LLC — no commitment to lend.
Price a Loan