Rental Property Refinance Help
Member since 2026 · 1 post · 4 votes
Rental Property Refinance Help
25 Replies
- 1dRyan BakerBusiness MemberLender · Strongsville / Cleveland, OH · Member since 2026 · 122 posts · 31 votes
Hi Curry, a duplex at about $280k with $176k owing is a solid candidate for a refi, and you've got roughly 37% equity to work with. Two quick things that will shape your options: whether the duplex is fully rented (and the current rents), and whether you plan to keep it long term. A DSCR loan in an LLC is usually priced off the rents rather than your income, but at a 675-690 score the rate and pricing will vary quite a bit between lenders, and a conventional refi can sometimes come out cheaper if you're okay staying in your own name. Cash-out with little or no upfront cost is doable in some cases, though it usually means a slightly higher rate in exchange for lender credits, so it's worth comparing a couple of structures side by side.
I do lending and happy to walk through the numbers with you on a quick call. My direct line and email are on my profile.
(Drafted with AI assistance.)
Curry, you've got real equity there, roughly 37% at $280K value with $176K owed, so a cash-out is doable. The honest part is that "lower rate" and "cash out" pull against each other. Cash-out pricing is usually higher than a straight refi, and credit in the high 600s also moves both the rate and how much you can pull. So the first thing to decide is which goal matters more.
If it's the rate, a rate-and-term refi with little or no cash back will price better. If it's the cash, compare offers on the total cost and the monthly payment, not just the rate.
On the LLC: DSCR loans are made to close in an LLC, and qualification is based on the duplex's rent covering the payment, not your personal income. Have your current leases ready, since the lender will use the lower of your actual rent and market rent.
On upfront cost: the appraisal is usually the one thing you pay before closing. Most of the other closing costs can be rolled into the new loan if there's enough equity.
I'm a lender, for transparency, and I see a lot of duplex refis with exactly this setup.
- Virtual Assistant · Member since 2026 · 28 posts · 7 votes1d
Hi Curry, a DSCR refi could be a good fit for a duplex the lender mostly looks at the rental income instead of your personal income, and depending on the numbers you may be able to get a rate below 7.8% and still take some cash out (often up to 75–80% of the value). What do both units rent for, and roughly what's the property worth now? Happy to help you compare options, feel free to message me.
- 1dLogan LambertPro MemberMember since 2026 · 16 posts · 8 votes
Hey, you definitely have some spread in the property, but there are a few things you need to keep in mind.
First, is the property actually going to appraise for $280K? That's going to be important.
Second, your credit score. If you're under 680, many DSCR outlets may limit you to around 65% leverage. Even under 700, you're typically looking at around 70%. I do have relationships with lenders that can potentially offer higher leverage, but you're going to pay for it in the interest rate.
At 70% LTV, you're looking at a $196K loan against your $176K balance. That's only $20K in equity before closing costs, so you may walk away with around $10K, depending on the fees.
If you want to refinance into your LLC, DSCR is likely going to be your best route. But here's where I'm going to shoot you straight: with your credit score sitting where it is, I wouldn't expect you to improve much on that 7.8% rate. You could very well end up in the 8s or higher, depending on the program.
Even on the conventional side, the numbers may not make sense for what you're trying to accomplish.
I'm a lender who believes in being upfront rather than wasting someone's time or money. Typically, you'll have an appraisal expense upfront, and other closing costs can often be structured into the loan if the numbers allow.
Could you potentially walk away with some cash? Absolutely, if everything lines up. But getting cash out, lowering your rate, and keeping upfront costs minimal all at once is going to be very difficult with this scenario.
I'd rather tell you that now than promise you something that doesn't make financial sense.
- 1dGregory AcsPro MemberLender · MD · Member since 2025 · 260 posts · 97 votes
With your current 7.8% rate, exploring a refinance makes sense. Just keep in mind that cash-out options and closing in an LLC may affect your loan choices. Have you received any DSCR quotes yet?
- 1dNoah WrightBusiness MemberUSA, Nationwide · Member since 2024 · 352 posts · 125 votes
You've already got the numbers a lender asks for first, which saves a round of back and forth. Most DSCR lenders go by your middle credit score, so it's worth pulling all your reports before you apply. Whether that middle score lands above or below 680 can change both the rate and how much cash you can take out. Most DSCR loans also carry a prepayment penalty, and a shorter one or none at all usually costs you some rate. If you'd want to refi again when rates come down, that choice can matter as much as the rate itself. The rate you're quoted comes from several things set together, not from your score alone. Do you know your middle score?
- Lender · Houston, TX · Member since 2026 · 113 posts · 34 votes1d
Nice work building that much equity in the Cincinnati duplex, that's a solid spot to be refinancing from. Since you want it in the LLC, a DSCR loan is worth a look because it's based mainly on the rents covering the payment, not your personal income, though cash-out usually caps out somewhere around 70 to 75 percent of value. I help investors with exactly this and work with a network of lenders, so if I'm not the right fit I'll connect you with someone who is. Send me the current rents and I'll point you the right way.
- Member since 2026 · 23 posts · 5 votes1d
I'm a mortgage broker. With about 37% equity you have room to work, but at 675–690 the max leverage on a DSCR cash-out often drops a notch, so ask each lender what their cutoff is at 680 and 700. If you're a few points under, a quick rescore before applying can change your options. Lead with a signed lease on both units. DSCR lenders use the lower of actual rent and the appraiser's market rent, so month-to-month tenants can shrink your loan. Moving title from your name into the LLC is normally handled at closing on a DSCR refi, but ask if they require the LLC to be formed and in good standing beforehand. "Little upfront cost" usually means lender credits for a slightly higher price, so compare total cost and net cash in hand, not just the rate. And decide which goal matters more, the lower payment or the cash, because cash-out and a lower rate pull against each other.
- Member since 2026 · 8 posts · 1 vote1d
Hey Curry, a duplex at 7.8% with equity is a solid spot to be in. A couple things worth knowing before you pick a route: DSCR lenders qualify off the rent, not your personal income, but most want the property in an LLC at or before closing, and rate plus points vary a lot with your credit score and how much cash you pull out (lower LTV usually means a better rate). It's worth comparing the payment after cash out against what you have now, not just the rate. Happy to help you compare a few lender options if you want. Shoot me a DM. - Robbie, Natural Lending Co
- 1dStacy RaskinBusiness MemberLender · Member since 2022 · 1k+ posts · 526 votes
If you are putting in an LLC, many investors will use a DSCR loan if a non owner occupy rental property as you can't vest a property in an LLC with a conventional loan. There is a possibility for a cash out- how much will be based on different factors. What will determine loan options is what is your mortgage credit score, appraised value, how much seasoning or the last time you did a transaction and what state the property is (lenders are licensed state by state). You will have more options with some lenders and a higher LTV if the property is rented. Happy to connect to discuss further.
Bright Skyline518 Reviews - 1dErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Hi Curry,
It may be possible if you are willing to forfeit some cash out and leave equity in the property. Getting a low 7 rate at par with the max cash out would require a higher credit score, and likely a longer prepayment penalty.
LuxePrivate Investments LLC 570 Reviews - Lender · Milwaukee, WI · Member since 2026 · 15 posts · 4 votes1d
@Curry Malan Logan's math is the part to sit with. At 70% LTV you'd net maybe $10K after costs, likely at a rate in the 8s, and as Erik said, a better rate means leaving cash in or taking a longer prepay penalty. So you'd be locking into a higher rate for a small check, and losing the option to refi cheaply when rates come down.
Two things I'd do first:
Work on the score. Paying revolving balances below about 10% of their limits before the lender pulls credit is the fastest lift, and crossing 700 or 720 changes DSCR pricing and max leverage more than anything else you control.
Get clear on why you want the LLC. If it's liability, a solid landlord policy plus an umbrella covers much of that today at low cost, without refinancing.
If the score moves, a rate-and-term refi into the LLC with a short or bought-down prepay is a much better trade than a cash-out at 680.
- Lender · Philadelphia, PA · Member since 2024 · 52 posts · 16 votes1d
Hi Curry, a duplex with that much equity is a good candidate to look at both ways, so it is smart to compare the total cost and not just the rate. On a DSCR loan the lender will mainly look at whether the rent covers the payment, taxes and insurance, and moving it into your LLC is usually straightforward, but the rate is often a bit higher than a conventional refi in your own name. With a value around $280k and a balance near $176k, a cash out DSCR loan would depend on the rent and your credit in the 675 to 690 range, and prepay terms matter a lot if you plan to refi again. I am with Royal Partners and I am happy to run straight numbers on both options if you want to DM me the rent, taxes and insurance so you can see the real difference.
- Lender · Member since 2021 · 500 posts · 131 votes1d
Probably not going to be lowering your rate much with a DSCR loan at the moment if that is a major goal. If you can boost your credit score, that will likely help and make sense to revisit.
- 1dDivin KanyamaBusiness MemberAccountant · Seattle, WA · Member since 2025 · 671 posts · 278 votes
@Curry Malan There may be a path here, but I'd separate your three goals: a lower rate, cash out, and little money due upfront. Based on your estimates, you're at about 62.9% loan-to-value. As an illustration—not a program limit or approval—if a lender allowed 70% LTV, that would mean a $196,000 loan and roughly $20,000 before closing costs and payoff adjustments. The appraisal and underwriting would determine what's actually available.
I'd get side-by-side conventional and DSCR quotes using the same cash-out amount. Have each lender confirm whether it can close with your LLC as borrower and titleholder, and ask about personal guarantees. For DSCR, include both units' rents, taxes, insurance, and any HOA dues so the lender can assess coverage. Your estimated credit range alone isn't enough to know whether you can beat 7.8%. And "no upfront cost" isn't necessarily cheaper: costs may be financed into the balance or offset by a higher rate.
One less-obvious caveat: a lower DSCR quote may come with a prepayment penalty that makes your next refinance expensive if rates fall. Ask for pricing with and without that penalty, plus net cash to you and the full monthly payment. I'd compare the deal you'll actually live with—not just the headline rate—and confirm the LLC closing structure before transferring title.
- Real Estate Agent · Detroit, MI · Member since 2016 · 106 posts · 54 votes1d
One thing I'd pin down before comparing quotes: what is the cash-out FOR? The right answer changes completely depending on that.
If the cash is the next property's down payment, a slightly higher rate with real cash in hand can beat the cheapest rate with nothing out. If it's reserves or paying off expensive debt, run the blended rate on what you're retiring versus what you're adding.
Practical notes from doing this on rentals: at 675-690, conventional cash-out pricing gets hit hard on rate adjustments, which is why DSCR quotes often win on paper for this profile — but read the prepayment penalty term (3-5 years is common), because it decides whether you can refinance again if rates drop. And 'close in the LLC' usually means the DSCR route; a conventional loan wants you personally on title, and transferring into the LLC afterward is a due-on-sale conversation to have with your eyes open.
Also get the appraisal ordered early. On rentals, the appraised value is the number that decides the whole deal, and it's the one estimate in the stack you don't control.
- Lender · Miami, FL · Member since 2026 · 33 posts · 13 votes1d
Hey @Curry Malan , its definitely possible to refinance you and get you cash out on this, however, the maximum is dependent on how much cashflow the property produces. One thing to note, you will have a lower rate on a rate and term refi than on a cash out. the difference is about .125-.25%
Sent you an invitation to connect, we can do something here.
- Lender · Franklin, TN · Member since 2026 · 126 posts · 35 votes22h
Quick math, Curry: 75% of 280k is about 210k, so roughly 34k gross before closing costs. Costs can usually be rolled in, so "no upfront" is mostly doable except the appraisal, which nearly every lender collects before the file moves. With scores right around 680 your middle score moves DSCR pricing a lot, so dont let five people pull your credit, and ask about the prepay penalty since that matters more than an eighth on the rate if you might sell or refi in 2-3 years.
- 21hJaycee GreenePro MemberReal Estate Consultant · St. Louis MSA · Member since 2024 · 3k+ posts · 728 votes
Hey @Curry Malan. What's the rent/NOI for the property and are you wanting to do the refi with a local Cincy bank/credit union lender or an HML?
- Lender · Stamford, CT · Member since 2026 · 50 posts · 8 votes20h
@Curry Malan Your duplex at $280K value with $176K owed fits our DSCR cash-out refi, up to 75% LTV, closing in your LLC. I'm happy to run a quick funding review on the rents and payoff to see what cash out looks like.
Neeraj, J3 Creative Consulting
Hi Curry — on the numbers you posted, a DSCR cash-out into your LLC is plausible: $176K owed on a $280K value is about 63% LTV, and DSCR cash-out typically runs up to 70–75% LTV, so roughly $196K–$210K total loan size before costs. The one number that decides it is the rent. What are both units bringing in monthly (gross), and what are taxes and insurance running? With that I can tell you straight whether DSCR beats a new conventional loan on rate and cash out — and how much cash out is actually on the table.
Jiao Liu, Eirvale Financial Services
- Lender · Dallas, TX · Member since 2024 · 23 posts · 10 votes19h
Curry, I’d keep an eye on your credit and do everything you can to get it to 700 for better rates. If a partner or family member on your entity has a higher score, you could use that.
Your middle score sets the cash-out. At 680 you can get up to 75%, under 680 it’s 70%. That’s a $210K or $196K loan against the $176K you owe, so about $34K or $20K before costs. You need to take into account one to two origination points and closing costs.
It might actually be better to look at a rate and term. It can still get you up to 2% cash out, save you some on the rate, and you’d most likely end up with the same deal.
Our DSCR loans can be in a personal name or an entity. Most of what we do is in LLCs, which is what we recommend.
A lower rate, cash out and no cost rarely all happen on the same loan, and the prepay is something to take a look at.
Out of curiosity, what do both units rent for? That’ll be a huge part of the puzzle. Would actually love to take a look at this one for you.
I run a boutique lender, so weigh that.
- Lender · Houston, TX · Member since 2026 · 105 posts · 22 votes16h
Curry, on a duplex at $280K with $176K owed, a DSCR cash-out at 75% of value is about $210K. That's roughly $34K before closing costs, and closer to $24K in your pocket after them.
The harder part is your other goal. At 675-690, most DSCR lenders will price you at or above the 7.8% you have now. Cash-out and a lower rate usually don't come together at that score. If the rate matters more, the cleanest path is to get the score past 700 before you refinance. If the cash matters more, it's there today. Moving title into your LLC is normal on a DSCR loan and doesn't hurt you.
I wrote up how I size these on my website, which you can find through my profile. Which matters more to you right now, the cash or the payment?
- 16hMayo GilfurtPro MemberReal Estate Consultant · Connecticut Ct · Member since 2026 · 163 posts · 35 votes
Based on the numbers provided, your current loan-to-value ratio is approximately 63%, which gives you some equity to work with.
A cash-out refinance may be possible, depending on the property's rental income, location, credit profile, and lender guidelines. However, obtaining a lower rate than your current 7.8% while also taking cash out may be challenging.
I would compare both conventional investment-property refinancing and DSCR options before making a decision. Also, refinancing into an LLC may involve additional lender and title requirements.
The property's monthly rental income and location would be important factors in determining which financing structure makes the most sense.
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