Unlock the equity in your investment property to purchase additional properties, renovate existing assets, consolidate debt, or increase available capital for your next opportunity.
What Is a Cash-Out Refinance?
Replace your current mortgage with a new loan and receive cash based on your property’s available equity.
Uses include:
- Buying more investment properties
- Renovations
- Paying off high-interest debt
- Business expansion
- Building reserves
Benefits
- Access your property’s equity
- Keep investing without selling
- Lower monthly payments (when applicable)
- Portfolio growth
- Flexible loan terms
- Competitive lender options
Qualifications
- Sufficient property equity
- Credit score requirements
- Property appraisal
- Income or DSCR (depending on loan)
- Property condition
Required Documents Needed
- Mortgage Statement
- Property Information
- Insurance
- Driver’s License
- Bank Statements
- Entity Documents
- Existing Loan Information
Frequently Asked Questions
What is a cash-out refinance?
A cash-out refinance replaces an existing property loan with a new loan and allows you to access a portion of the property’s available equity in cash.
What can I use the cash for?
Depending on the loan program, proceeds may be used to purchase additional investment properties, fund renovations, pay business expenses, consolidate eligible debt, or provide capital for other investments.
How much cash can I take out?
The amount depends primarily on the property’s value, existing loan balance, maximum loan-to-value (LTV) allowed by the lender, and your qualifications.
Do I need to own the property for a certain amount of time?
Some lenders have seasoning requirements before allowing cash-out refinancing, while others may offer programs with shorter ownership requirements. Guidelines vary by lender.
Can I cash out equity from a rental property?
Yes. Cash-out refinancing is available for many rental and investment properties, provided the property and borrower meet the lender’s requirements.
Can I refinance a property owned by my LLC?
Potentially, yes. Many real estate investor lenders offer cash-out refinance programs for properties held in an LLC or other eligible business entity.
Will I need an appraisal?
In most cases, the lender will need to establish the property’s current value. This may involve a traditional appraisal or another lender-approved valuation method.
Can I use a cash-out refinance to fund my next investment property?
This is one-way experienced investors can access equity from an existing property and use the proceeds toward another investment opportunity.
Please Note: Loan programs, rates, terms, down payment requirements, eligibility, and approval timelines vary by lender and borrower qualifications. Contact Star Rich Funding to discuss available financing options for your investment property
Ready to Put Your Property’s Equity to Work
Let Star Rich Funding help you explore cash-out refinance options for your investment property.
