Cash-Out Refinancing for Investment Properties: How to Pull Equity From Your Rentals

If you’ve built up equity in your rental properties, a cash-out refinance can be one of the smartest ways to fuel your next investment — without selling anything.

What is a Cash-Out Refinance?

A cash-out refinance replaces your existing loan with a new, larger one, and you pocket the difference in cash. For investors, this is a powerful way to access the equity sitting in a property and redeploy it into new deals, renovations, or reserves.

Why Investors Use Cash-Out Refis

Equity tied up in a property isn’t working for you. A cash-out refi lets you put that capital back to work — buying another rental, funding a flip, or consolidating higher-cost debt. Because it’s debt and not a sale, it’s generally not a taxable event, though you should confirm with your tax advisor.

Can You Do It With a DSCR Loan?

Yes. DSCR cash-out refinances are extremely popular with investors because they qualify based on the property’s rental income rather than your personal tax returns. If the rents support the new payment, you can typically pull cash out.

How Much Can You Pull Out?

Most lenders will go up to 70-75% of the property’s value on a cash-out refinance for investment properties, depending on the loan program, property type, and your credit profile.

When Does It Make Sense?

When you have significant equity and a clear plan to deploy the cash productively. The key is making sure the new payment still works with the property’s cash flow and that your next use of the money will earn more than the cost of the debt.

How Jordan Lev Mortgage Can Help

We structure cash-out refinances for investors nationwide, including DSCR cash-out loans with no tax returns required. Submit your scenario at jlwmtg.com or call 717-586-5144.