Need Income-Based Lender for Triplex Refinance

Lender · Springfield, MO · Member since 2023 · 652 posts · 315 votes

1mo

Hey Ian,

If it is a DSCR loan, then that is exactly what it should be doing. Are you wondering if there are any that would go above 80% LTV to completely pay off the bridge?

If there is still a shortage based on appraised value, then you might be stuck unless you have another property with some equity you could bundle into a small portfolio or get a small HELOC on to help cover the closing costs?

Happy to connect and talk through numbers if it would be helpful

Good luck!

[email protected]417-427-2612

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Ian MacDougallPro Member
OP
Real Estate Agent · Washington, DC + Central VA · Member since 2018 · 16 posts · 13 votes
1mo
Quote from @AJ Exner:

Hey Ian,
If it is a DSCR loan, then that is exactly what it should be doing. Are you wondering if there are any that would go above 80% LTV to completely pay off the bridge?
If there is still a shortage based on appraised value, then you might be stuck unless you have another property with some equity you could bundle into a small portfolio or get a small HELOC on to help cover the closing costs?
Happy to connect and talk through numbers if it would be helpful
Good luck!
Thanks, AJ. Yes, basically wondering if a lender would go off of just income instead. Our two appraisals came in at 340k and 320k (which I think is way low for the area), so looking at 40-50k out of pocket if we go that route. We potentially could leverage our other rentals, but prefer not if it's that much. Looks like our best option may be selling... Quite the fun learning experience :)
1 Reply
AJ ExnerPro Member
Lender · Springfield, MO · Member since 2023 · 652 posts · 315 votes
1mo
Quote from @Ian MacDougall:

Quote from @AJ Exner:

Hey Ian,
If it is a DSCR loan, then that is exactly what it should be doing. Are you wondering if there are any that would go above 80% LTV to completely pay off the bridge?
If there is still a shortage based on appraised value, then you might be stuck unless you have another property with some equity you could bundle into a small portfolio or get a small HELOC on to help cover the closing costs?
Happy to connect and talk through numbers if it would be helpful
Good luck!
Thanks, AJ. Yes, basically wondering if a lender would go off of just income instead. Our two appraisals came in at 340k and 320k (which I think is way low for the area), so looking at 40-50k out of pocket if we go that route. We potentially could leverage our other rentals, but prefer not if it's that much. Looks like our best option may be selling... Quite the fun learning experience :)

Shoot, that is a tough lesson, but the good news is that you can learn from it and live to fight another day!
I mean, do you have enough for a HELOC on one of your others? There are some outlets that could do a HELOC on 5-,10-, or 20- year terms that could give you that flexibility?
[email protected]417-427-2612
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LaTarence Dunbar

Lender · Washington DC · Member since 2026 · 67 posts · 17 votes

1mo

Quote from @Ian MacDougall:

My partner and I bought a triplex earlier this year in central VA on a bridge loan. We put a small amount of rehab into it to make it completely rent ready, and our all-in payoff is around 318k. During my initial deal analysis, non-renovated SFH comps sold for 405k and above, with smaller, more as-is MFHs in the low to mid 300k range further away from the house. Obviously, SFH and MFH comps are weighed differently for an appraisal, which we are finding out the hard way. We've been in the DSCR refinance process over the past month and a half trying to refi into a long-term 75-80% LTV loan unsuccessfully. We've had two appraisals done during our refinance process that came in too low (one that we've challenged to no avail). This would mean bringing a lot of money to the closing table to cover the difference, which we would like to avoid. Our property manager is about to rent each unit out for $1295, $895, $895 for a total of $3,085/mo income.

The house is in a great area, strong rental market, and we really want to keep it long term. We could shoot to just resell it and cut our losses, but want to avoid that if possible.

My question is, and it may be a long shot, are there any DSCR or private lenders that could refinance our current bridge loan payoff purely based off of rental income? Monthly PITI payment with management fee, capex, vacancy, etc. would be around $2700, so a little under $400 in cash flow with $3085 coming in.

Thanks in advance for any experiences, intel, or resources you can provide.

Hi Ian,

Appraisal friction on 2–4 unit properties in Central VA is a very common headache right now. When multi-family comps are sparse, local appraisers often rely on distant, low-quality data or misapply single-family metrics, severely hurting your loan-to-value on a BRRRR.

A few strategic ways to overcome this without bringing heavy cash to the closing table:

Leverage Tech Lenders & AVMs: Certain institutional and tech-driven platforms evaluate properties using Automated Valuation Models (AVMs) or desktop valuations rather than standard full appraisals. If regional data supports your target value, this completely bypasses conservative local appraiser bias.
Rate-and-Term vs. Cash-Out DSCR: Ensure you structure this strictly as a Rate-and-Term refinance to pay off the existing bridge loan. Rate-and-term guidelines generally offer higher LTV caps and more lenient underwriting on short-term debt payoffs.
DSCR Ratio Coverage: With $3,085 in gross monthly rent against a ~$2,700 total payment, your DSCR sits around 1.14. While some standard programs prefer 1.20+, there are specific 1.0–1.15 DSCR programs designed specifically to cover bridge debt payoffs based on actual lease income.

I’ll shoot you a direct message with a few specific valuation frameworks and lender options that might fit this setup.

Best of luck getting this across the finish line!

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Jenna Fawley

Lender · Pickerington, OH · Member since 2026 · 49 posts · 39 votes

1mo

You may have another path here, but I don’t think the answer is going to be a lender completely ignoring the appraised value. Even DSCR loans are still going to be limited by both the property’s value/LTV and the rental income.

Where I’d look next is a lender that will treat the triplex more like an income-producing property and really dig into the rents/NOI rather than relying as heavily on traditional residential comps. With $3,085 in monthly rent, the deal may work from a cash-flow standpoint, but getting the full $318k payoff is going to depend heavily on where the lender lands on value.

I’m a broker and have access to quite a few DSCR, portfolio and private options. If you want, I’d be happy to take a look at the numbers and the two appraisals you already have and see if there’s another structure/lender that makes sense before you give up and sell it.

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Stacy RaskinBusiness Member

Lender · Member since 2022 · 1k+ posts · 505 votes

1mo

The appraisal will be an issue for a DSCR loan as that's how they are going to calculate loan to value. There are DSCR loan programs for 1 to 4 units that will go down to a DSCR 1 ratio when considering the actual or projected rents against the new mortgage, property taxes & insurance, (and HOA if there is one) for better terms. There are DSCR loan programs for less than a DSCR 1 ratio.

I have seen investors do different appraisals which it sounds like you have already done. Getting another appraisal with a different lender might get you closer to where you need to be but not sure if it will get you over the top- since as you have seen already, appraisals vary between appraisers for the same property. Happy to connect to discuss further.

[email protected]818-770-0340

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Robin SimonBusiness Member

Lender · Austin, TX · Member since 2022 · 5k+ posts · 4k+ votes

1mo

Quote from @Ian MacDougall:

My partner and I bought a triplex earlier this year in central VA on a bridge loan. We put a small amount of rehab into it to make it completely rent ready, and our all-in payoff is around 318k. During my initial deal analysis, non-renovated SFH comps sold for 405k and above, with smaller, more as-is MFHs in the low to mid 300k range further away from the house. Obviously, SFH and MFH comps are weighed differently for an appraisal, which we are finding out the hard way. We've been in the DSCR refinance process over the past month and a half trying to refi into a long-term 75-80% LTV loan unsuccessfully. We've had two appraisals done during our refinance process that came in too low (one that we've challenged to no avail). This would mean bringing a lot of money to the closing table to cover the difference, which we would like to avoid. Our property manager is about to rent each unit out for $1295, $895, $895 for a total of $3,085/mo income.

The house is in a great area, strong rental market, and we really want to keep it long term. We could shoot to just resell it and cut our losses, but want to avoid that if possible.

My question is, and it may be a long shot, are there any DSCR or private lenders that could refinance our current bridge loan payoff purely based off of rental income? Monthly PITI payment with management fee, capex, vacancy, etc. would be around $2700, so a little under $400 in cash flow with $3085 coming in.

Thanks in advance for any experiences, intel, or resources you can provide.

You are honestly probably out of luck on this and have to accept the appraised values or maybe try for a third with another lender -- lenders are simply going to have to lend "off" the appraisal since that would be the collateral - risk/reward reality for the lender just wouldn't make sense to lend on the income where the downside of a default and foreclosure would probably mean underwater

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J CastroBusiness Member

Lender · Florida · Member since 2025 · 697 posts · 250 votes

1mo

Hi@Ian MacDougall, welcome to BP!

From a lender’s perspective, this is a scenario worth reviewing before deciding to sell.

The biggest issue here may not be the property’s ability to support the debt—it may be the appraised value and the resulting LTV. With projected rents of $3,085/month and approximately $2,700 in monthly expenses, the property appears to have positive cash flow, which is an important factor for an income-based investor loan.

That said, DSCR lenders don’t all underwrite the same way. Some programs may be more flexible on LTV, DSCR, property type, lease/rental documentation, and refinance scenarios. A triplex can also have different appraisal considerations than a single-family property, so the comparable sales used can make a significant difference.

With an estimated payoff around $318K, I would suggest having the entire file reviewed by an investor-focused lender rather than simply shopping the same 75–80% LTV DSCR product again.

We work with real estate investors on DSCR, bridge, and other investor financing solutions. We can review the current payoff, rents, property details, appraisal, and desired loan amount to determine whether there is a workable refinance structure.

Sometimes the answer isn’t “the deal doesn’t work”—it’s finding the loan structure and lender that properly fit the deal.

JCREIG Capital Funding

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Jimmy LieuBusiness Member

Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes

1mo

Quote from @Ian MacDougall:

My partner and I bought a triplex earlier this year in central VA on a bridge loan. We put a small amount of rehab into it to make it completely rent ready, and our all-in payoff is around 318k. During my initial deal analysis, non-renovated SFH comps sold for 405k and above, with smaller, more as-is MFHs in the low to mid 300k range further away from the house. Obviously, SFH and MFH comps are weighed differently for an appraisal, which we are finding out the hard way. We've been in the DSCR refinance process over the past month and a half trying to refi into a long-term 75-80% LTV loan unsuccessfully. We've had two appraisals done during our refinance process that came in too low (one that we've challenged to no avail). This would mean bringing a lot of money to the closing table to cover the difference, which we would like to avoid. Our property manager is about to rent each unit out for $1295, $895, $895 for a total of $3,085/mo income.

The house is in a great area, strong rental market, and we really want to keep it long term. We could shoot to just resell it and cut our losses, but want to avoid that if possible.

My question is, and it may be a long shot, are there any DSCR or private lenders that could refinance our current bridge loan payoff purely based off of rental income? Monthly PITI payment with management fee, capex, vacancy, etc. would be around $2700, so a little under $400 in cash flow with $3085 coming in.

Thanks in advance for any experiences, intel, or resources you can provide.

Unfortunately, most DSCR lenders are still going to base the maximum loan amount on the lower of the purchase price/cost basis or appraised value depending on seasoning, so strong rental income usually won't completely solve a low appraisal. The good news is your rents seem to support the debt reasonably well, so I'd shop the deal with a few different DSCR lenders and local/community banks before selling or bringing a large amount of cash to closing. I'd specifically ask about seasoning requirements, whether they allow cash-out based on current appraised value, minimum DSCR, and whether they have portfolio products that give them more flexibility than a standard DSCR program. I'd also run the numbers at 70% or even 65% LTV and compare the cash you'd need to bring against the cost of selling and losing a property you otherwise want long term. Sometimes leaving some equity trapped in the deal is still the better outcome if the property cash flows and you believe in the area long term. Happy to connect and answer any questions you have!

[email protected]614-300-7535

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Gregory AcsPro Member

Lender · MD · Member since 2025 · 187 posts · 71 votes

1mo

It sounds like the biggest hurdle isn't the DSCR calculation, it's the appraised value. Even if the property cash flows well, most DSCR lenders still rely on the appraisal to determine the maximum LTV, so a strong rent roll alone usually isn't enough to overcome a lower valuation.

If you haven't already, I'd compare a few different refinance structures instead of focusing only on DSCR. Depending on the lender and your overall profile, it may be worth looking at portfolio products or other investment loan options if your goal is simply to get out of the bridge loan without bringing a large amount of cash to closing.

At this point, I'd be comparing the long-term cost of waiting for additional rental history or appreciation versus bringing cash in now, because either approach could make sense depending on your investment timeline.

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Vijay FriedmanBusiness Member

Miami, FL · Member since 2026 · 766 posts · 122 votes

1mo

Quote from @Ian MacDougall:

My partner and I bought a triplex earlier this year in central VA on a bridge loan. We put a small amount of rehab into it to make it completely rent ready, and our all-in payoff is around 318k. During my initial deal analysis, non-renovated SFH comps sold for 405k and above, with smaller, more as-is MFHs in the low to mid 300k range further away from the house. Obviously, SFH and MFH comps are weighed differently for an appraisal, which we are finding out the hard way. We've been in the DSCR refinance process over the past month and a half trying to refi into a long-term 75-80% LTV loan unsuccessfully. We've had two appraisals done during our refinance process that came in too low (one that we've challenged to no avail). This would mean bringing a lot of money to the closing table to cover the difference, which we would like to avoid. Our property manager is about to rent each unit out for $1295, $895, $895 for a total of $3,085/mo income.

The house is in a great area, strong rental market, and we really want to keep it long term. We could shoot to just resell it and cut our losses, but want to avoid that if possible.

My question is, and it may be a long shot, are there any DSCR or private lenders that could refinance our current bridge loan payoff purely based off of rental income? Monthly PITI payment with management fee, capex, vacancy, etc. would be around $2700, so a little under $400 in cash flow with $3085 coming in.

Thanks in advance for any experiences, intel, or resources you can provide.

@Ian MacDougall
This sounds more like a valuation/LTV issue than an income issue. At roughly $3,085 rent against $2,700 PITIA, the property is around 1.14 DSCR. The bigger question is where the two appraisals landed, because a $318K payoff would need roughly a $424K value at 75% LTV before closing costs. There may be other DSCR options worth looking at depending on the appraisal values and seasoning.

786-656-0387

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Erik EstradaBusiness Member

Lender · Member since 2022 · 6k+ posts · 1k+ votes

1mo

Quote from @Ian MacDougall:

My partner and I bought a triplex earlier this year in central VA on a bridge loan. We put a small amount of rehab into it to make it completely rent ready, and our all-in payoff is around 318k. During my initial deal analysis, non-renovated SFH comps sold for 405k and above, with smaller, more as-is MFHs in the low to mid 300k range further away from the house. Obviously, SFH and MFH comps are weighed differently for an appraisal, which we are finding out the hard way. We've been in the DSCR refinance process over the past month and a half trying to refi into a long-term 75-80% LTV loan unsuccessfully. We've had two appraisals done during our refinance process that came in too low (one that we've challenged to no avail). This would mean bringing a lot of money to the closing table to cover the difference, which we would like to avoid. Our property manager is about to rent each unit out for $1295, $895, $895 for a total of $3,085/mo income.

The house is in a great area, strong rental market, and we really want to keep it long term. We could shoot to just resell it and cut our losses, but want to avoid that if possible.

My question is, and it may be a long shot, are there any DSCR or private lenders that could refinance our current bridge loan payoff purely based off of rental income? Monthly PITI payment with management fee, capex, vacancy, etc. would be around $2700, so a little under $400 in cash flow with $3085 coming in.

Thanks in advance for any experiences, intel, or resources you can provide.

Have you located a lender yet? They exist however they treat it as a portfolio loan (I.E. 2 or 3 triplexes in 1 loan) You can typically find them by calling around locally.

[email protected]818-269-7983

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Ali Najjar

Lender · NJ · Member since 2025 · 50 posts · 23 votes

1mo

The DSCR route sounds worth exploring given the rental income and the fact that you're trying to hold long term. The appraisal issue is probably the biggest hurdle here, especially with the difference between the SFH and MFH comps. I'd also look closely at how the lender is calculating the rent and expenses rather than just the headline LTV.

Hope you guys get it figured out, definitely sounds like a property worth keeping

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Lipa F.

Investor · Member since 2024 · 76 posts · 27 votes

1mo

For rate and term refinance you can find a lender that will do 85% ltv

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Need Income-Based Lender for Triplex Refinance

Need Income-Based Lender for Triplex Refinance

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