Cash-out refinance for rental property — how much equity can investors pull from investment properties
Cash-Out Refinance

How Much Cash Out Can You Get From a Rental Property?

LTV limits, DSCR constraints, and realistic cash-out amounts with example rental property scenarios. Learn how to calculate the maximum cash-out for an investment property refinance.

Quick Answer

Most DSCR cash-out refinances cap at 70-75% loan-to-value (LTV). If your rental property is worth $400,000 and you owe $200,000, a 75% LTV cap means the maximum new loan is $300,000 — giving you up to $100,000 in cash-out (minus closing costs). The DSCR ratio acts as a second constraint: even if LTV allows more cash-out, the new higher payment must still be covered by rent at the required ratio.

The Two Constraints on Cash-Out

Constraint 1: LTV Cap

Max new loan = Property Value × LTV Cap. Typical cap: 70-75%. A $500K property at 75% LTV allows a $375K max loan. If you owe $250K, the LTV-allowable cash-out = $375K - $250K = $125K.

Constraint 2: DSCR Floor

The new loan's PITIA must be covered by rent at the required DSCR. If the larger loan pushes PITIA above what rent supports at 1.15 DSCR, the cash-out amount is constrained by DSCR — not LTV.

Example: Cash-Out in Phoenix, AZ

Property Value: $450,000 | Current Loan: $225,000 | Market Rent: $3,200

  • LTV cap (75%): Max loan $337,500 → $112,500 potential cash-out
  • At $337,500 loan at 7.5%: P&I $2,359, PITIA ~$2,900
  • DSCR at max cash-out: $3,200 ÷ $2,900 = 1.10 — borderline
  • At $310,000 loan (less cash-out): PITIA ~$2,700, DSCR 1.19 — stronger

The investor may need to take less cash-out ($85K instead of $112.5K) to maintain a comfortable DSCR.

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Related Guides

Cash-Out Refinance for Rental PropertyDSCR Cash-Out Refinance Guide

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Last Updated: June 21, 2026