Cash-Out Refinance
Cash-Out Refinance for Investment Properties
Pull equity from your rental properties to scale your portfolio. Up to 75-80% LTV, DSCR qualification available, and closings in as fast as 14 days. No tax returns needed.
No credit pull. No commitment. Takes 2 minutes.
What Is a Cash-Out Refinance?
A cash-out refinance allows you to replace your current mortgage with a new, larger loan and pocket the difference in cash. For real estate investors, it is one of the most powerful tools available for unlocking the equity trapped inside rental properties and redeploying that capital into new investments.
Here is how it works: your investment property gets appraised at its current market value. The new lender issues a loan for a percentage of that appraised value (up to 75-80% LTV). That new loan pays off whatever you owe on the existing mortgage, and the remaining balance is given to you as cash at closing.
Unlike a home equity loan or HELOC, a cash-out refinance replaces your entire existing loan with a single new mortgage. You end up with one payment, one rate, and one set of terms. For investors holding properties that have appreciated in value or have been improved through renovation, this is the fastest way to pull equity without selling.
Through Sinai Capital, you have access to 50+ lenders that specialize in investor cash-out refinances. We shop your deal to find the best rate, highest LTV, and fastest close available for your specific situation. Many of our lender partners offer DSCR qualification, meaning you can qualify using the rental income the property generates rather than your personal tax returns.
How Cash-Out Refinancing Works
The cash-out refinance process for investment properties follows four straightforward steps. From application to cash in hand, most deals close in 14 to 21 days through Sinai Capital.
Property Appraisal
A licensed appraiser evaluates your investment property and assigns a current market value. This number determines how much equity you can pull out. If you have recently completed renovations, the appraiser considers the improved condition and comparable sales to determine the after-repair value.
LTV Calculation
The lender calculates the maximum new loan amount based on the loan-to-value ratio. For example, if your property appraises at $400,000 and the lender offers 75% LTV, the maximum new loan is $300,000. The higher the appraised value relative to your current balance, the more cash you receive.
New Loan Funded
Once approved, the new loan is funded. The proceeds first pay off your existing mortgage balance in full. If your old loan was $200,000 and the new loan is $300,000, the first $200,000 goes to satisfy the old debt. The new mortgage replaces it with fresh terms, rate, and payment schedule.
Cash at Closing
The remaining balance after paying off the old mortgage is wired to you as cash. Using the example above, you would receive approximately $100,000 minus closing costs. These funds can be used for any purpose: buying more investment properties, funding renovations, paying down other debt, or building reserves.
Key Features
Our lender network offers competitive terms on cash-out refinances for investment properties. Here is what you can expect.
Loan-to-Value
Up to 75-80% LTV
Pull maximum equity from your investment property based on current appraised value.
Loan Amounts
$100K – $5M+
From single-family rentals to large commercial portfolios, we cover the full range.
Loan Terms
30-Year Fixed, ARM, IO
Choose a fixed rate for stability, an adjustable rate for a lower start, or interest-only for cash flow.
Close Time
14 – 21 Days
Move quickly on your next deal. Most cash-out refinances close in two to three weeks.
Cash Out
No Minimum, No Cap on Use
Take out as much equity as LTV allows. Use the proceeds for anything - no restrictions.
Qualification
DSCR or Full Doc
Qualify using rental income alone (DSCR) or with traditional income documentation.
Seasoning
Typically 6 Months
Most lenders require 6 months of ownership. Some allow as little as 3 months.
Property Types
SFR, Multi, Commercial
Single-family, duplexes, triplexes, quads, multifamily, mixed-use, and commercial properties.
Who Should Consider a Cash-Out Refinance?
A cash-out refinance is not for every investor, but for those in the right situation it can be a game changer. Here are the profiles of investors who benefit the most from pulling equity out of their rental properties.
Investors Looking to Scale
You own one or more rental properties with significant equity. Instead of letting that equity sit idle, you can pull it out and use it as down payments on additional investment properties. This is how experienced investors build portfolios quickly without needing to save up for each new purchase.
BRRRR Strategy Users
The BRRRR method (Buy, Rehab, Rent, Refinance, Repeat) depends on the cash-out refinance as the critical fourth step. After purchasing a property at a discount, completing renovations, and stabilizing it with tenants, you refinance at the new higher value to recover your initial investment and repeat the process with the next property.
Debt Consolidation
If you used a high-interest bridge loan, hard money loan, or private money to purchase a property, a cash-out refinance allows you to pay off that expensive short-term debt and replace it with a long-term, lower-rate mortgage. At the same time, you can pull out additional equity if the property has appreciated.
Funding Renovations on Other Properties
Sometimes your best source of renovation capital is the equity sitting in a property you already own. Cash-out proceeds can fund rehabs on other properties in your portfolio, allowing you to force appreciation and increase rental income across multiple assets without tapping personal savings.
Qualification Requirements
Cash-out refinance requirements vary by lender and loan program. Below are the general guidelines our lender partners use for investment property cash-out refinances.
Loan-to-Value (LTV)
Most lenders allow up to 75% LTV on investment property cash-out refinances. Some lender partners go up to 80% LTV for borrowers with strong credit and healthy DSCR ratios. Commercial properties may be limited to 65-70% LTV depending on the asset type and condition.
Seasoning Requirements
Most lenders require you to have owned the property for at least 6 months before doing a cash-out refinance. Some programs allow 3-month seasoning, and a few will waive seasoning entirely for properties purchased with cash. If you purchased with a hard money or bridge loan, certain lenders will count the original purchase date for seasoning purposes.
DSCR Ratio
For DSCR cash-out refinances, the property must generate enough rental income to cover the new mortgage payment. Most lenders look for a DSCR of 1.0 or higher, meaning the monthly rent equals or exceeds the monthly mortgage payment (principal, interest, taxes, insurance, and any HOA). Some lenders accept ratios as low as 0.75 with compensating factors like a lower LTV or higher credit score.
Credit Score
Minimum credit score requirements range from 620 to 680 depending on the lender and program. Higher credit scores (700+) unlock better rates and higher LTV options. DSCR programs tend to be more flexible on credit because the qualification focuses on the property's income rather than the borrower's personal financial profile.
Appraisal
A full interior and exterior appraisal is required for all cash-out refinances. The appraisal determines the current market value, which directly controls how much equity you can access. Properties in good condition with strong comparable sales tend to appraise higher, giving you more cash at closing.
Sample Deal: Cash-Out Refinance in Action
Lisa owns a rental duplex in Tampa she purchased 2 years ago for $350,000. She put $70,000 down and financed the remaining $280,000 with a conventional loan. Since then, the Tampa market has appreciated and Lisa has paid down her mortgage. Her current loan balance is $265,000.
Lisa orders an appraisal through Sinai Capital and the property comes back at a current market value of $475,000. She wants to pull out as much equity as possible to purchase her next investment property.
The Math
Lisa receives approximately $82,344 in cash at closing. Her new loan amount is $356,250 at a 30-year fixed rate. The duplex rents for $3,800 per month, and her new monthly payment (including taxes, insurance, and escrow) is $2,950, giving her a DSCR of 1.29. She qualified using only the property's rental income - no tax returns, no W-2s.
Lisa uses her $82,344 in cash-out proceeds as the down payment on a single-family rental in Jacksonville, continuing to grow her portfolio without dipping into personal savings.
DSCR Cash-Out Refinance vs. Conventional
There are two main paths to a cash-out refinance on an investment property: DSCR (Debt Service Coverage Ratio) and conventional. Both accomplish the same goal - pulling equity out of your property - but they differ significantly in how you qualify.
| Feature | DSCR Cash-Out Refi | Conventional Cash-Out Refi |
|---|---|---|
| Qualification | Based on property rental income | Based on personal income (DTI) |
| Tax Returns Required | No | Yes (typically 2 years) |
| Max LTV | Up to 75-80% | Up to 75% |
| Close Time | 14-21 days | 30-45 days |
| Interest Rates | Slightly higher | Slightly lower |
| Number of Properties | No limit | Typically capped at 10 |
| Best For | Full-time investors, self-employed, portfolio builders | W-2 earners with few investment properties |
For most real estate investors, the DSCR cash-out refinance is the better option. It removes the biggest bottleneck in conventional financing: income verification. Self-employed investors, business owners, and full-time landlords often have complex tax returns that make it difficult to show enough personal income to qualify conventionally. With DSCR, none of that matters. If the rent covers the mortgage, you qualify.
DSCR cash-out refinances also close faster because there is less documentation to underwrite. There is no need to verify employment, calculate debt-to-income ratios, or review two years of tax returns. The lender focuses on the property: its appraised value, its rental income, and the resulting DSCR ratio.
The tradeoff is a slightly higher interest rate compared to conventional financing. For many investors, that difference is well worth the speed, simplicity, and ability to qualify for an unlimited number of properties without hitting debt-to-income caps.
Frequently Asked Questions
Common questions about cash-out refinances for investment properties. Need a quick answer? Call us at (732) 754-2144.
How does a cash-out refinance work on an investment property?
A cash-out refinance on an investment property replaces your existing mortgage with a new, larger loan based on the current appraised value of the property. The difference between the new loan amount and your old loan balance is paid to you in cash at closing. For example, if your property appraises for $500,000 and you owe $250,000, a 75% LTV cash-out refinance would give you a new loan of $375,000 and $125,000 in cash (minus closing costs). You can use that cash for any purpose, including purchasing additional investment properties.
What is the maximum LTV for a cash-out refinance?
Maximum LTV for a cash-out refinance on an investment property typically ranges from 70% to 80%, depending on the lender, property type, and borrower qualifications. Single-family rentals and small multifamily properties (2-4 units) can often qualify for up to 75-80% LTV. Larger commercial properties may be limited to 65-75% LTV. Higher credit scores and stronger DSCR ratios can help you access the higher end of available LTV ranges.
Can I do a cash-out refinance with DSCR qualification?
Yes. A DSCR cash-out refinance qualifies you based on the rental income the property generates rather than your personal income. If the property produces enough rent to cover the new mortgage payment (typically a DSCR ratio of 1.0 or higher), you can qualify without providing tax returns, W-2s, or pay stubs. This is the most popular cash-out refinance option for real estate investors because it simplifies the qualification process and does not impact your personal debt-to-income ratio.
How fast can I close a cash-out refinance?
Most cash-out refinances through Sinai Capital close in 14 to 21 days. The timeline depends on how quickly the appraisal is completed, how fast you provide required documentation, and the specific lender processing your loan. DSCR cash-out refinances tend to close faster than conventional because they require less documentation. We work with lenders that prioritize speed and can sometimes close in as few as 10 business days for straightforward deals.
What are the closing costs on a cash-out refinance?
Closing costs on a cash-out refinance for an investment property typically range from 2% to 4% of the new loan amount. This includes the appraisal fee (usually $400-$800), title insurance, lender origination fees, attorney fees, and recording fees. Some lenders offer the option to roll closing costs into the loan, so you do not have to pay them out of pocket. Your loan specialist at Sinai Capital will give you a detailed breakdown of expected costs before you commit to a lender.
How long do I need to own a property before I can cash-out refinance?
Most lenders require a seasoning period of 6 months from the date you purchased or last refinanced the property. Some lenders allow cash-out refinances with as little as 3 months of seasoning, while others require 12 months. If you purchased the property with cash or a hard money loan and have completed renovations, some lenders will use the after-repair value for the cash-out refinance even with minimal seasoning. We match you with the lender that fits your specific timeline.
Can I use cash-out proceeds to buy another investment property?
Absolutely. There are no restrictions on how you use the cash from a cash-out refinance. Buying additional investment properties is one of the most common uses. Many investors use the BRRRR strategy (Buy, Rehab, Rent, Refinance, Repeat) to continuously pull equity out of stabilized properties and reinvest it into new deals. Other common uses include funding renovations on other properties, paying off higher-interest debt, or building reserves.
Ready to Pull Equity from Your Investment Property?
Tell us about your property and we will shop your deal to 50+ lenders. You get the best rate, highest LTV, and fastest close available. No cost to you.
No credit pull. No commitment. Takes 2 minutes.
Related Loan Products
Depending on your investment strategy, these loan products may also be a fit. We help you find the right financing for every deal in your pipeline.
DSCR Loans
Qualify based on rental income, not personal income. No tax returns required. Ideal for purchasing or refinancing investment properties.
Portfolio Loans
Finance multiple investment properties under a single loan. Simplify your debt structure and unlock better terms across your portfolio.
Bridge Loans
Short-term financing to acquire or stabilize properties before refinancing into a permanent loan. Close in as few as 7 days.