Memphis is the original turnkey cash-flow market — low prices, strong yields, no state income tax, and a deep property-management ecosystem. Cash-out is straightforward when DSCRs run this high.

This guide covers how a DSCR cash-out refinance works specifically in Memphis — the local market, the underwriting factors that actually move your number, and how to get a quote in 30 seconds. You qualify on the property's rental income, not your tax returns.

Why Memphis Investors Cash Out

Because Memphis rents are high relative to prices, DSCRs are strong and cash-out refinances pencil easily. Out-of-state investors use it to recycle equity into more turnkey doors. The mechanics mirror our universal Cash-Out Refinance DSCR program: up to 75% of appraised value, the existing loan is paid off, and the rest comes back to you — tax-free* loan proceeds. *Consult your tax advisor.

Memphis Neighborhoods We Finance

We close cash-out refinances across Memphis and its metro, including Midtown, Cooper-Young, and East Memphis, plus Berclair, Raleigh, Frayser, Whitehaven, and suburban Bartlett. Because rents vary block to block, we qualify on the rent your specific property commands — see the Memphis general DSCR guide for sub-market detail.

Local Underwriting Notes — Memphis, TN

Tennessee has no state income tax, and Memphis/Shelby County taxes and insurance are manageable. The large turnkey and PM ecosystem means reliable rent rolls — which is what the DSCR is built on.

2026 Cash-Out Program Snapshot

What to Expect

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Frequently Asked Questions

Why are Memphis DSCRs so strong? +
Rent-to-price ratios are among the best in the country, so the property’s income easily covers the payment — which means more borrowable equity at 75% LTV while keeping the DSCR healthy.
Does Tennessee’s lack of income tax help? +
It helps the after-tax return on your cash flow, and there’s no state-level income reporting to worry about — though DSCR loans never look at your income anyway. You qualify on the rent.
Can I cash out a turnkey or out-of-state-owned Memphis rental? +
Yes — most Memphis DSCR borrowers are out-of-state. We close in an LLC, qualify on the rent roll, and your PM’s lease documentation supports the file.

Related Resources

DSCR Capital Partners is a brand of UTM Financial, LLC (NMLS #2591548). For business-purpose, non-owner-occupied investment properties only. Informational only; not a loan commitment. Equal Housing Lender.