Pull equity loan off rental properties

Member since 2026 · 6 posts · 6 votes

We inherited paid off rental properties. 1 house, 2 duplexes

We have put in a lot of rehab in the properties to increase rental potential. We were told from a credit union bank we could only pull 50% of home value. We need 75-80% and need to pull from all 3 properties.

Does anyone have any suggestions on financial institutions that offer 80% on equity loan. The properties are paid off. I live in Little Rock, Arkansas.

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Judith Chime
Virtual Assistant · Member since 2026 · 17 posts · 5 votes
10h
Kelly, since the properties are already paid off and you've improved their rental potential, it may be worth exploring investor-focused refinance options. Are you looking to refinance all three properties together or separately?
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Kelly Pfeifer
OP
Member since 2026 · 6 posts · 6 votes
10h
Will pull all 3 separate because they all aren’t completely rehabbed yet.
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Judith Chime
Virtual Assistant · Member since 2026 · 17 posts · 5 votes
10h
Financing them separately may give you more flexibility, especially while you're still completing the renovations.
For the properties that are already renovated, are they currently rented? Also, do you have an estimated value and the amount you'd ideally like to pull out of each one?
That would help clarify what refinancing options may be worth exploring.
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Derek BrickleyBusiness Member
Lender · Ann Arbor, MI · Member since 2021 · 690 posts · 236 votes
10h
Hey Kelly!
You should be able to get 75 to 80% on all three without a problem, depending on what they're rented for, since positive cash flow is really the key there. One thing working in your favor: since the properties were inherited, you usually don't have to wait out the normal ownership period before a cash out. Doing them separately makes sense too, refi the finished ones first and do the others once the rehab is done so the appraisal picks up the work. Feel free to reach out, happy to go through those options with you if you'd like!
[email protected]734-645-7722
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Gregory AcsPro Member
Lender · MD · Member since 2025 · 255 posts · 97 votes
10h
Since the properties are paid off, a cash-out refinance may be worth comparing with an equity loan. Conventional cash-out limits are generally lower for rentals, but other loan programs may offer different options.
Are all three properties in Arkansas, and roughly what are they worth?
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Ryan BakerBusiness Member
Lender · Strongsville / Cleveland, OH · Member since 2026 · 94 posts · 22 votes
9h
Kelly, 80% across paid-off rentals is really a business-purpose cash-out refinance question rather than a bank equity loan. Credit unions often cap near 50% because they underwrite like a primary home. Investor lenders usually look at the rent each property brings in against its payment, so your rehab work and lease income actually help you. Since the properties aren't all finished, I'd refinance them one at a time as each gets leased, and keep your repair receipts and rent roll handy. Expect the top loan-to-value on cash-out to land below 80% for most investor programs, so it helps to map out what you actually need first. Happy to walk through the numbers on a quick call, my direct line and email are on my profile.
(Drafted with AI assistance.)
[email protected]330-548-3340
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Simmy AhluwaliaPro Member
Lender · Atlanta, GA · Member since 2015 · 1k+ posts · 200 votes
9h
@Kelly Pfeifer - so it depends. Are all of the unit rented now? If so, the individual dscr numbers will determine if they can qualify for 80% or 75% cashout, in addition to your credit score.
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Nyisha Walton
Lender · Houston, TX · Member since 2026 · 105 posts · 32 votes
8h
Kelly, three paid off rentals is a great spot to be in. Pulling equity from investment properties is exactly what I help with, and I work with a network of lenders, so if I'm not the right fit I can connect you with someone who is. Look at a DSCR or portfolio cash out loan instead of a credit union equity loan, since those lenders mostly look at the rents versus the payment and many go up to 75% on rentals. Message me the rents and rough values and I'll point you to the right person.
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Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
8h
Hey Kelly,
You can go up to 80% Cash out on a DSCR loan. Happy to review
[email protected]818-269-7983
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Marc Del Priore
Lender · Philadelphia, PA · Member since 2024 · 44 posts · 15 votes
5h
Kelly, paid off rentals with fresh rehab are exactly what DSCR cash out lenders like to see, because the loan is sized off the rent and the new appraised value instead of your personal income. On finished and rented units, 75 to 80 percent cash out is realistic, while a unit that is still mid rehab may need to wait or be priced more conservatively until it is leased. Doing them separately actually helps here, since each property can be underwritten on its own rent and value. I am Marc with Royal Partners, and I am happy to give you straight numbers if you DM me the values, rents, and how much you want to pull on each property.
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Divin KanyamaBusiness Member
Accountant · Seattle, WA · Member since 2025 · 630 posts · 264 votes
3h
@Kelly Pfeifer I'd shop beyond that credit union and ask specifically about cash-out financing for paid-off rentals, including DSCR options. Have lenders confirm whether 75–80% is available for each property—not just an advertised maximum—and how they handle inherited ownership, recent rehab, and duplexes.
I’m not familiar with individual Arkansas lenders, so this is a shopping approach rather than a lender recommendation. One important caveat: an 80% loan doesn’t mean 80% cash in hand after costs, and qualifying doesn’t necessarily mean the payments fit your cash flow. I’d compare net proceeds, reserves, and prepayment terms before borrowing against all three.
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Dan Duenas
Lender · Irvine, Orange County · Member since 2026 · 66 posts · 35 votes
1h
Yes, you can do it both ways — and the right call depends on what you want to do with the properties next.
A blanket/portfolio loan puts all three under one loan. One closing, one payment, and it clears minimum loan sizes that a single small property might fall under. The trade-off is cross-collateralization: if you want to sell or refi just one property later, you're dealing with a partial release, which usually means paying that property's share down first.
Separate loans keep each property independent — sell one, refi one, no permission slip from the others. A DSCR cash-out on each one qualifies off the property's rent, not your personal income docs, and each is sized off its own rent and appraisal. That flexibility is usually worth the extra closings if you might sell one in the next few years.
Third option if you only need a smaller pull and don't want to touch the first mortgages: an investor HELOC in 2nd position on a property, no appraisal needed.
If you share rough values, rents, and balances, happy to run your numbers and show you the portfolio vs. separate math side by side. — Dan
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