Access equity from your rental property using DSCR cash-out refinance — where rental income and property cash flow drive the review, not personal tax returns. Review your cash-out scenario with Matt Dean at NEXA Mortgage.
NEXA Mortgage · Matt Dean · NMLS #227603 · Company NMLS #1660690
A DSCR cash-out refinance lets rental property investors replace an existing mortgage with a larger loan and receive the difference as cash — all while the lender reviews rental income instead of personal income. The new loan must be supported by the property's rent and cash flow. Investors use DSCR cash-out refinance to fund additional purchases, renovations, or portfolio growth without needing tax returns or W-2 verification.
Portfolio builders
Pull equity from an appreciated rental to fund the next investment property purchase.
BRRRR strategy investors
Recycle capital from a stabilized rental into the next deal — the cornerstone of BRRRR.
Renovation funding
Use equity to fund property improvements that increase rent and long-term value.
Entity-held properties
Cash-out refinance on LLC-owned rentals is available through many DSCR programs.
Taking cash out increases the loan amount, which increases the monthly payment — and that pushes DSCR lower. A property that cash-flows well with its current loan balance may not support the same ratio after pulling equity. The key question: Does the rent still cover the new, larger payment? Use the DSCR calculator to test different cash-out amounts against your rent and see where the ratio lands.
Cash-Out DSCR Example
Property Value
$400,000
Current Balance
$220,000
New Loan (75% LTV)
$300,000
Cash Out
$80,000
Monthly Rent
$3,200
New PITIA
$2,385
DSCR
1.34x
At 1.34x DSCR with $80,000 cash out, this scenario shows strong rent coverage. A lower LTV (70%) or higher rent would improve the ratio further.
Also relevant: DSCR purchase loans · rate-and-term refinance · LLC loans · state guides
DSCR drops with every dollar you pull. Cash-out means a bigger loan, which means a higher PITIA. I always test multiple LTV scenarios — sometimes taking $10,000 less keeps DSCR above the program minimum and saves the deal.
LTV caps on cash-out. Most DSCR cash-out programs cap at 70–75% LTV on single-family rentals. Condos and 2–4 units may have stricter limits. Know your max before you plan the cash-out amount.
Tax and insurance recalculations. When you refinance, the lender will use current tax and insurance estimates — not the numbers from your original loan. If taxes have increased since purchase, the new PITIA may be higher than expected.
Use of cash-out matters. Lenders may ask about how the cash-out proceeds will be used — especially for larger amounts. Have a clear answer: next down payment, property renovation, portfolio expansion.
— Matt Dean, Sr. Loan Officer, NEXA Mortgage · NMLS #227603
Most DSCR cash-out programs cap at 70–75% LTV for single-family rentals. The actual cash-out amount is also constrained by DSCR — the rent must cover the new, larger payment. A property worth $400,000 at 75% LTV allows a $300,000 loan. If the current balance is $220,000, that's up to $80,000 in cash-out (minus closing costs).
Yes — DSCR cash-out refinance always requires an appraisal with a rent schedule. The appraiser determines both the current property value (which sets LTV) and the market rent (which drives DSCR).
Many DSCR cash-out programs require a minimum of 1.0x–1.15x, but stronger scenarios at 1.20x+ open up better pricing and more program options. Because cash-out raises the loan amount, it's common for the DSCR to be tighter than a rate-and-term refinance on the same property.
Yes — many DSCR cash-out programs allow LLC-owned properties. A personal guarantee is typically required. See our LLC rental property loans page for details on entity vesting.
Share your property value, current loan balance, rent, and cash-out goal. Matt reviews DSCR, LTV, and whether the numbers support taking equity out.
Loan options, eligibility, pricing, terms, and availability depend on borrower profile, property type, documentation, investor experience, program guidelines, and applicable licensing. This is not a commitment to lend. NEXA Mortgage · NMLS #1660690 · Matt Dean NMLS #227603 · Equal Housing Opportunity.