$1M+ Cash Out Refi - 80% LTV - No Syndication

[Jaycee Greene]

Bundling 40+ SFRs into a $1M+ Cash Out Refi, 80% LTV Portfolio DSCR 

📈 This is what happens when strategy, trust, and clean execution line up

🧱Over 7 years, my client built a 40-unit rental portfolio - one property at a time - in a Midwestern city’s overlooked neighborhoods

🛠️No hype. No flipping. No outside capital. Just patient acquisitions, high-quality rehabs, and a focus on the long term

🏘️Some buildings were nearly condemned, but he resurrected them to “C2” status and received praise from city inspectors

📅In late 2024, that diligence paid off - we closed a $5.6M refinance with $1.2M cash out at 80% LTV and a 1.10x NOI DSCR

🏦From one of the city’s most conservative banks, but it didn’t happen overnight. The bank followed his work for years—small loans, relationship-building, and trust earned through numbers.

⚡That refinance unlocked a new chapter: he’s now eyeing larger projects, but remains anchored in the same communities

🚨Takeaway: If the numbers are right and the story is strong, even the most conservative lenders will support you! If you know of a similar developer, please share their story here!

[Joe S.]

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What percent of that 40 properties were bought 2022 or prior, and how much did that makeup of the 5.6M of equity in 2024?

What was the DSCR ratio before re-financing?

@V.G Jason 55% of the properties were acquired in 2022 or earlier. Those pre-2023 properties represented 59% of the overall value of those 40 properties.

With your question about the DSCR before the re-financing, are you asking what the minimum DSC ratio was from the various lenders on those loans?

DSCR before the re-financing.

The 59% of value before the 40 properties, were how many properties of the 40 to be exact?

@V.G Jason His DSCR pre-portfolio refinance was above 1.50x and his LTV was ~ 53%

22 properties (55% * 40)

 I asked the same thing twice. 

So 59% of the value of his properties were in 22 properties. 18 were the other 40%. All these properties are pretty equally valuated. 

What were 2023- current rates in those 18? And is that 1.5 + DSCR including the 18 if so, how much down did he put?

@V.G Jason Yes, the properties were fairly equally valued. My client tended to buy the same "type" and "size" of SFR within about a 5 miles radius.

For his pre-2023 properties, his average interest rate was 6.07%. For post 2022 deals, the average interest rate was 7.25%. Keep in mind, the interest rate for the cash out refi was ALMOST irrelevant. What he valued most was the capital that he could unlock without having to sell any of his properties.

What might help here is how he acquired/financed most of his deals.

On average, he bought each of his rehab properties for less than $50k, put at least $75k into the rehabs (a few were as much as $100k). On average, he usually put 20%-30% in on the purchase price, but we used HMLs for rehab financing, with many doing up to 100% of the rehab costs. And when the properties were stabilized, the ARVs would be in the $170k-$180k range with rents around $1.10-$1.20/SF. So, then we'd refi into a DSCR loan with a local bank or credit union that usually had minimums DSCRs of 1.20x-1.25x.

Do you have similar properties that you're looking to refinance like this?

 I have more properties, just don't intend to re-finance or re-structure like this. 

Just I have to yet find someone that invested post 2023 and pre 2023 that have had mirror like results. 

He is one of the few, and good for him. Surprised his rate was so high pre-2023, did he not re-finance then?

Most everyone who bought pre-2023 was better suited to diversify from RE. Only way RE is working post 2023--granted small sample size-- is less levered and capex as a top line not bottom line exposure.  And if done right, still absolutely excellent. I just am hearing from almost everyone(agents, sellers, recent buyers) nothing but regrets and stalling. 

I question the desire to re-finance, what's next for the capital? At 6.69 I still would rather own the debt than necessarily own the property.  Obviously this depends on property, but 10-20 low-grade properties I rather condense to 3-7 excellent properties & mortgage notes. 

 You mentioned you would rather own the debt at 6.69…..

If you like making first position Loans in Texas, I know someone that should be a good fit for that. 😉😉