Cash-Out Refinance for Real Estate Investors
Asset-based cash-out refinancing lets real estate investors pull up to 80% LTV from stabilized properties — no personal income audit, no DTI calculation. The property's rental income qualifies the loan. Use the proceeds to fund your next flip or construction project while keeping your existing portfolio intact.
How Does a DSCR Cash-Out Refinance Work?
Instead of examining your personal salary or tax returns, the lender divides the property's gross monthly rental income by its total monthly housing expenses (principal, interest, taxes, insurance, HOA). If the result is 1.0 or higher — meaning rent covers debt service — the property qualifies itself. Your W-2, business write-offs, and personal DTI are not factors.
How Much Can You Pull Out?
- Maximum LTV: Up to 80% on fully stabilized cash-flowing or unencumbered 1-4 unit residential properties
- Minimum Asset Value: $1,000,000+
- Rates: 5.74–8.99% for stabilized assets with 720+ FICO and $250,000 liquid reserves
- Qualifying Income: Property's actual rent roll or STR platform statements (Airbnb/VRBO revenue frequently exceeds conventional lease income)
What Is the Best Strategy for Redeploying Extracted Equity?
A $300,000 equity extraction can cover down payments and initial reserves for two completely separate projects simultaneously — a 90% LTV Fort Lauderdale flip acquisition and a 90% LTC Miami ground-up build, for example. Never redeploy 100% into new deals; maintain a dedicated liquid reserve to cover vacancy cycles or unexpected property expenses on your existing portfolio.
Why DSCR Instead of a Conventional Cash-Out Refi?
- No portfolio cap: Traditional lenders cap financed properties at 4–10. DSCR treats every property as an isolated entity — no ceiling on portfolio size.
- Credit report protection: DSCR loans close inside an LLC and do not report to your personal credit profile, keeping your consumer borrowing capacity intact.
- Insurance alignment: DSCR loans are built for landlord and STR policies. Consumer mortgages conflict with short-term rental operations and can void coverage.
Want us to fund your next deal?
Bring us the numbers and the timeline. Our originations team will tell you what it can be financed at — and what it would take to close.
Frequently Asked Questions
- Can I do a cash-out refinance on a short-term rental property?
- Yes. STR income (Airbnb/VRBO) is accepted for DSCR qualification. Properties in high-demand tourism markets often qualify for higher LTV because gross revenue exceeds what a long-term lease would generate.
- What FICO score do I need for a cash-out refinance?
- 720+ FICO is the standard benchmark for stabilized refinance programs. Strong credit unlocks rates in the 5.74–8.99% range.
- How long does the property need to be stabilized before I can cash out?
- Most programs require 3–6 months of documented rent roll or STR income. Recently completed construction projects may need to show full occupancy before qualifying.
- Can I use a cash-out refinance to fund a new construction project?
- Yes — this is one of the most common use cases. Pull equity from a stabilized rental to cover the down payment and reserves required for a ground-up construction or fix and flip deal.
- Does Clear Asset Solutions do cash-out refinances nationwide?
- Yes. We fund cash-out refinances across all 24 of our target markets including Florida, California, Texas, Massachusetts, Georgia, New Jersey, New York, and the Carolinas.
