DSCR cash-out refinance calculator: the cash a rental can free up
For a rental you already own. See the new loan under each limit, which one binds, the cash that comes back after the payoff and closing costs, and the new DSCR.
Cash comes outThe LTV limit sets the loan, and the rent covers it.
Cash to you at closing
$78,250
New loan of $225,000, set by the LTV limit.
- At 75% cash-out LTV
- $225,000
- What the rent supports at 1.05x
- $269,097
- Cost-basis cap (80%, if under 3 months)
- Does not apply
- New loan
- $225,000
- Payoff and closing costs
- $146,750
- New DSCR
- 1.21x
- Change in principal and interest / month
- $485
The new loan is the lowest of four limits; the one that binds is named above. Cash-out LTV runs about 5 points under purchase LTV at most lenders, and the loan closes in your LLC or corporation.
The method
- LTV limit = value × 75% (our program's cash-out LTV).
- Cost-basis limit (only if owned under 3 months) = price plus documented improvements × 80%.
- Rent limit = the loan whose payment, plus taxes, insurance and HOA, the rent covers 1.05 times, on a 30-year schedule at your rate.
- New loan = the lowest of those and the program maximum. Cash out = new loan − payoff − closing costs.
Just finished a rehab? The BRRRR calculator runs the whole buy, rehab and refinance. Selling soon after? Check the prepayment penalty first. Cash-out LTV at other lenders is in the LTV comparison.
Questions people ask
How much cash can I take out of a rental?
The new loan is the lowest of several limits, less what you owe and closing costs. In the example, a $300,000 rental at 75% LTV supports $225,000; the $2,400 rent would support $269,097 at 1.05x, so LTV binds. After the $140,000 payoff and 3% closing costs, $78,250 comes out.
Is there a seasoning period for a DSCR cash-out refinance?
On our program, until you have owned the property 3 months the loan is sized on what you put in: up to 80% of price plus documented improvements. After that the appraised value is used. Other lenders set their own seasoning rules; ask before you order the appraisal.
Does the rent limit a cash-out refinance?
Yes. The new payment, with taxes, insurance and HOA, has to be covered 1.05 times by the rent. In the example the new DSCR is 1.21x and the principal and interest rise by $485 a month.
Can I do a cash-out refinance in my own name?
Not on these programs. DSCR loans close in an LLC or corporation with a personal guarantee. If the rental is in your name today, title moves to the entity at or before closing.
Numbers look right?
Send the deal. We check it against the lender's terms and come back with a loan.