Strategy

Cash-out refi on a free-and-clear property - how does DSCR work?

Dev K. · Mar 9, 2026 · 1022 views

I own a rental outright. Can I do a DSCR cash-out refi to pull equity out and fund my next purchase?

Replies

2 replies

Sandra L. Mar 9, 2026

Yes, done this twice. The lender calculates DSCR using the proposed new payment as if you are buying with a mortgage.

Arin_B Mar 9, 2026

We can go up to 75% LTV on a DSCR cash-out refi. Happy to run a quick scenario - just need the address and estimated value.