DSCR Cash-Out Refinance Strategy
How investors use DSCR cash-out refinancing to extract equity and scale portfolios.
Cash-out DSCR refinance is the primary capital-recycling tool for portfolio investors. Extract equity from stabilized properties, redeploy into new acquisitions.
Typical structure
Cash-out caps at 75% LTV. Property must be seasoned (typically 6-12 months ownership). DSCR must clear lender minimum at new debt service.
When it makes sense
After appreciation has increased equity. After BRRRR has stabilized a renovated property. To consolidate higher-rate hard money into long-term DSCR. To refinance ARM into fixed-rate.
Common pitfalls
Property tax reassessment after refi can drop DSCR below threshold. Insurance premium increases. Rate environment changes between purchase and refi.
Run the numbers: Max cash-out calculator · DSCR calculator
Lenders in the directory writing dedicated DSCR rental programs
Filtered directly from each lender's own products tag in the directory — not a claim that a lender supports this specific strategy, only that it originates this loan program. See the full directory for terms, minimums and each lender's verification date.
Easy Street Capital Velocity Mortgage Capital Visio Lending Griffin Funding Angel Oak Mortgage Solutions CoreVest Finance Conventus Logan Finance Merchants Mortgage & Trust Park Place Finance MoFin Lending LoanFunders OfferMarket Harpoon Capital Deephaven Mortgage A&D Mortgage FundLoans United Wholesale Mortgage Mortgage Capital Funding
Frequently asked questions
What's the typical seasoning requirement?
6-12 months ownership before cash-out refi. Some lenders allow earlier with rate adjustments.
Can I cash-out at 80% LTV?
Standard cash-out caps at 75%. Some lenders extend to 80% for experienced borrowers with strong DSCR.
Does cash-out trigger income tax?
No — cash-out refi proceeds are loan proceeds, not taxable income.