DSCR PadSplit Cash-Out Refi in Charlotte, NC: Capital to Scale Portfolio

[Trevor Higgins]

DSCR PadSplit Cash-Out Refinance in Charlotte, NC — How a 3-Month History Unlocked Growth

An investor in Charlotte operated a single-family home as a PadSplit—room-by-room with weekly payouts—and wanted to scale into the next acquisition without pausing to save a new down payment. Traditional full-doc routes weren’t a fit because of the amount of properties and documentation required. We pursued a DSCR loan structured as a cash-out refinance, qualifying the deal on the asset’s income rather than a traditional full-doc product. 

The key was treating the PadSplit as what it is: a cash-flowing investment property with variable, but trackable, rent streams. We organized three core workstreams. First, income: we pulled three months of consistent room-rental payout history from PadSplit and matched deposits to bank statements.

The appraisal supported the loan-to-value for a cash-out, and the timeline aligned with the investor’s next contract date. The refinance closed on schedule, releasing equity for the down payment and post-close reserves—creating a repeatable path to scale the portfolio with future DSCR and room-by-room assets.

Takeaways for investors using PadSplit/room-by-room models: clean payout records matter, expense transparency strengthens DSCR, and early valuation context helps avoid mismatched comps. In this scenario, only a 3-month history of consistent room-rental income was required, which was pivotal to moving quickly from stabilized operations to a funded cash-out refinance. Programs vary by market and lender, but with organized documentation and realistic underwriting assumptions, DSCR financing can turn existing cash flow into the capital needed for the next deal.