Cash-Out Refinance
Access the Equity in Your Investment Property.
Without Selling the Asset.
A cash-out refinance replaces your existing loan with a larger one. The difference is paid to you at closing — available for acquisitions, improvements, debt consolidation, or portfolio expansion. 28 years of experience structuring these transactions for real estate investors.
The Process
How It Works.
A cash-out refinance is straightforward in concept. The execution — program selection, documentation, positioning — is where experience matters.
01
Establish Current Value
An appraisal determines the property's current market value. This sets the ceiling on how much you can borrow — and how much equity you can access.
02
Determine Maximum LTV
Investment property cash-out refinances have maximum loan-to-value limits that vary by program, property type, and borrower profile. The gap between the max loan and your existing balance is the cash available.
03
Select the Right Program
Conventional, DSCR, bank statement, or portfolio — the documentation approach and program determine the rate, terms, and how the deal is underwritten. Selecting the right program is where structuring matters.
04
Close and Deploy
At closing, your existing loan is paid off, closing costs are covered, and the remaining cash is wired to you. Typically available for use immediately.
Applications
What Investors Use It For.
Fund a New Acquisition
Use equity from an existing property to cover the down payment on a new one. Expand the portfolio without liquidating assets or waiting to save capital.
Finance Improvements
Capital improvements — renovations, unit upgrades, deferred maintenance — can increase rents and property value. A cash-out refi funds the work without depleting reserves.
Consolidate Higher-Rate Debt
If you're carrying higher-rate debt across multiple properties or from other sources, consolidating into a single lower-rate loan can improve overall cash flow.
Build Reserves
Liquidity matters in real estate investing. Accessing equity while keeping the asset builds the cash position needed to move quickly on opportunities.
Reposition the Portfolio
Refinancing a stabilized property to fund a value-add acquisition is a common portfolio-building strategy. The equity in one asset funds the next.
Business Capital
For investors who operate through entities, cash-out proceeds can fund business needs — operating capital, equipment, or other investment-related expenses.
Programs
Program Options.
The right program depends on the property, the borrower's income structure, and how the deal needs to be positioned.
Conventional Cash-Out
Standard investment property cash-out refinance. Underwritten on the borrower's personal income and credit. Typically the most competitive rates for borrowers who qualify under conventional guidelines.
DSCR Cash-Out
Underwritten on the property's rental income relative to the proposed debt service — not the borrower's personal income. Designed for investors with complex income structures.
Bank Statement Cash-Out
Qualifying income derived from 12-24 months of business or personal bank statements. For self-employed investors whose tax returns don't reflect actual income.
Portfolio / Blanket Cash-Out
Cash-out refinancing across multiple properties under a single loan structure. Accesses equity from several assets simultaneously.
Due Diligence
What to Consider.
A cash-out refinance isn't always the right move. These are the factors that determine whether it makes financial sense.
Break-Even on Rate
If your existing rate is lower than current market rates, a cash-out refi means accepting a higher rate on the full balance. The cost of the capital needs to be weighed against what you're doing with it.
Equity Position After Closing
LTV limits mean you can't pull all the equity out. Understanding your post-closing equity position — and how it affects your overall portfolio — matters.
Seasoning Requirements
Most programs require the property to have been owned for a minimum period before a cash-out refinance. Typically 6-12 months, though this varies by program.
Impact on Cash Flow
A larger loan means a larger payment. If the property's rental income is tight relative to the new debt service, the cash-out may reduce monthly cash flow.
Deployment Plan
Cash sitting idle after a cash-out refi is expensive capital. Having a clear plan for how the proceeds will be deployed — and at what return — is part of the analysis.
FAQ
Common Questions.
Get Started
Tell Me About the Property.
Describe the property, the existing loan, and what you're planning to do with the proceeds. I'll review it and come back with a clear picture of what programs are available, how much equity you can access, and whether the numbers make sense.
Ready to access your equity?