DSCR Loans & Cash-Out Refis: Expand Your Rental Portfolio

So, you’ve got a duplex in Dallas or a quadplex in Katy. Maybe even an eight-unit beauty in San Antonio. They’re rented, earning income—and now you’re wondering how to tap that equity or scale up.

Enter: DSCR loans and cash-out refinancing—your new best friends in multi-family investing.

💼 What’s a DSCR Loan?

DSCR stands for Debt Service Coverage Ratio. Translation? Lenders look at your property’s income—not your W-2 or tax returns—to decide if you qualify.

How It Works:

• DSCR = Net Operating Income ÷ Annual Debt Payments
• If your DSCR is 1.0, you break even.
• A 1.25+ DSCR? Chef’s kiss. That means you’re comfortably covering the mortgage with room to spare.

✅ No income docs
✅ Based on rent and expenses
✅ Perfect for LLCs or portfolio investors

This is a game-changer for landlords scaling across states—or self-employed investors with “creative” tax returns.

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🏦 What’s a Cash-Out Refinance?

Already own a multi-family property? Refi it, take cash out of the equity, and use that cash for:

• Renovations
• Another investment property
• Paying off high-interest debt
• A well-deserved beach trip (okay… maybe not that one)

Lenders typically let you borrow up to 75% of your property’s appraised value (LTV). So, if your 4-plex is worth $600,000 and you owe $300,000, you could potentially refi and pocket up to $150,000 tax-free.

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💡 Why Combine DSCR & Cash-Out?

• Keep your tax returns out of it
• Refi into a stable 30-year fixed or interest-only product
• Use cash to fund your next deal—without selling

DSCR + Cash-Out = Recycle equity & grow your portfolio faster than your tenant’s rent increase.

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📊 2025 July Rates & Guidelines Snapshot

Loan Type	Interest Rate (Range)	Max LTV	Docs Required
DSCR Loan	6.5% – 8.5%	Up to 85%	Rent roll + lease only
Cash-Out Refinance	6.75% – 8.25%	Up to 75%	Appraisal + income docs

DSCRs generally close in 2–4 weeks. Interest-only options? You bet.

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📍 DSCR Loans Work in All 50 States

And yes—I help investors refinance or purchase rental properties nationwide. So whether your fourplex is in Florida or your duplex is in Detroit, I’ve got you.

Based in Katy, Texas, I serve the entire Lone Star State and beyond.

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🧮 Run your cash flow projections using my Rental Property calculator

📞 Want to discuss DSCR or a multi-unit refi?
👉 Schedule a call

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🎯 Final Takeaway: Grow Smart, Borrow Smarter

Multi-family investing is all about leverage and scalability. With DSCR loans and cash-out refis, you can recycle equity, avoid income-doc drama, and fund your next move faster. Let’s turn that duplex into a dynasty—one cash-flowing property at a time.