Put rental equity back to work
A DSCR cash-out refinance replaces the current loan on a rental with a larger one and hands you the difference, sized on the property’s rent rather than your paycheck.
Investors use cash-out refinances to fund the next down payment, pay off a short-term purchase loan after a rehab, consolidate higher-cost debt on the property, or build a reserve cushion. The new loan is underwritten on the rental’s income, so the question becomes whether the rent still covers the bigger payment.
That is exactly what our calculator is built to show. Enter today’s rent, the new loan amount you are considering and a rate you want to test. If the ratio slips below where you are comfortable, try a smaller cash-out amount and watch the number move. It is a quick way to find the balance between how much cash you take out and how healthy the property stays.
Cash-out proceeds from a business-purpose loan are meant for business purposes. Wholesale lenders will typically ask how you plan to use the money, and this product is not designed for personal or household costs. We will walk you through the business-purpose documentation as part of the file.
How it works in the app
Estimate value and equity
Enter a realistic value and current payoff in the scenario builder to see your loan-to-value.
Size the cash-out
Test a few loan amounts in the calculator and see how each one affects coverage.
Collect property docs
Leases, the current mortgage statement, insurance and tax bills go on the checklist.
We shop the refinance
A Loan Daddy loan specialist compares wholesale lender options and explains the trade-offs.
What wholesale lenders look at
Every program is different. These are the factors that come up most often, described in plain English.
Loan-to-value
Cash-out loans generally allow less leverage than purchases, so equity is the starting point.
Seasoning
Many programs look at how long you have owned the property. Recent purchases may be treated differently.
Lease and rent history
An executed lease and proof the rent is being paid help support the income side of the ratio.
Business purpose
Expect to document that the loan and its proceeds serve a business purpose.
Questions about cash-out refinance
How much cash can I take out?
It depends on the appraised value, how long you have owned the property, your credit and the ratio after the new payment. We show you the trade-offs across wholesale lenders rather than quoting a single limit.
Can I refinance a property I just bought?
Sometimes. Seasoning rules vary by wholesale lender. Tell us your purchase date and any improvements in the scenario so we can match programs that fit your timeline.
Can I use the cash for anything I want?
No. This is a business-purpose loan, so proceeds should serve your investment activity. Personal, family or household use is outside what we arrange.
More answers on the FAQ page.
Other ways we can help
Ready to see what your rental can support?
Build a scenario in a few taps, then send it over. A Loan Daddy loan specialist reviews it and shops wholesale lenders for you.