Business funding
DSCR Cash-Out
Pull equity out of a rental you already own, on the property’s own income.
General qualification guideline; lender and program requirements may vary.
Best forInvestors pulling equity out of a rental they own, on the property’s own income.
Overview
Equity you already have, working somewhere else
A DSCR cash-out refinance replaces the loan on a rental you own with a larger one, and hands you the difference. What makes it a DSCR loan is how it is underwritten: the lender looks at whether the property’s rent covers its own payment, not at your tax returns. For an investor whose returns are full of depreciation and write-downs, that is often the difference between a file that works and one that does not.
Most of the time the money goes straight back into property — a down payment on the next one, or a renovation on this one. It does not have to.
Benefits
- —Qualifies on the property's rental income rather than your tax returns
- —Turns equity you already hold into capital you can deploy
- —Property can be held personally or in an LLC or other entity
- —Useful for investors whose personal income understates what they can afford
- —The ratio is simple: rent divided by the monthly payment
Good for
Situations where it tends to fit
Property types and permitted structures depend on the lender and program.
Documentation
What you will typically need
Documentation centers on the property, the existing loan, and how you hold it:
- —Property address and details
- —Your current mortgage statement
- —Current rent (a lease, or a market rent analysis if it is between tenants)
- —Homeowner’s insurance
- —Entity documents if the property is held in an LLC
- —Government-issued ID
Qualification factors
What generally matters
- —Rent relative to the monthly payment (principal, interest, taxes, insurance, HOA)
- —Equity remaining in the property after the cash-out
- —Reserves, roughly six months of payments
- —Personal credit profile
- —Property type, condition, and whether it is currently tenanted
- —Lender / program guidelines
These are general guidelines only. Equity requirements, reserves, ratio requirements and terms all depend on the lender and the property.
Common questions
DSCR cash-out, answered plainly
How is this different from a DSCR purchase loan?
The underwriting logic is the same -- the property's income carries the loan -- but you already own the property, so the question is equity rather than down payment. Instead of asking what you are putting in, the lender asks how much you are taking out and what is left behind.
What ratio do I need?
The property's rental income generally needs to cover its debt payment: a ratio at or above 1.0, with many lenders preferring higher. Requirements vary by lender and program. You do not need to work the ratio out yourself -- tell us the rent and the payment and we will.
Does my personal income matter?
Generally it is not the basis for the decision. Your credit profile still matters even though income documentation usually does not, and lenders may ask about reserves and other obligations.
What if the rent does not cover the payment today?
Then a DSCR program is probably not the right route for this property right now, and something else may be. That is worth a conversation rather than a dead end -- tell us the situation and we will say what we think fits.
Can the property be in an LLC?
Often, yes. Many DSCR programs allow title in an LLC or other entity, and the lender's program determines what is allowed. If that is your structure, we will ask for the entity documents up front so the file moves cleanly.
Sitting on equity in a rental?
A few quick questions will tell you whether a cash-out is worth exploring on that property.
The guidelines on this page are general guidelines only — not guaranteed lender approval requirements. Requirements vary by lender and program. TK Capital Solutions is not a lender; all funding is subject to lender underwriting and approval.