Pull equity loan off rental properties

Little Rock, Arkansas
Mortgage Brokers & Lenders
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Pull equity loan off rental properties

Kelly Pfeifer
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 · 19 posts · 5 votes
    1d

    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?

    0Reply
  • Kelly Pfeifer
    OP
    Member since 2026 · 6 posts · 6 votes
    1d

    Will pull all 3 separate because they all aren’t completely rehabbed yet.

    0Reply
  • Judith Chime
    Virtual Assistant · Member since 2026 · 19 posts · 5 votes
    1d

    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.

    0Reply
  • Derek BrickleyBusiness Member
    Lender · Ann Arbor, MI · Member since 2021 · 690 posts · 236 votes
    1d

    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
    Gold Star Mortgage Financial Group547 Reviews
    WebsiteView Page
    0Reply
  • Gregory AcsPro Member
    Lender · MD · Member since 2025 · 260 posts · 97 votes
    1d

    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?

    0Reply
  • Ryan BakerBusiness Member
    Lender · Strongsville / Cleveland, OH · Member since 2026 · 99 posts · 25 votes
    1d

    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
    0Reply
  • Simmy AhluwaliaPro Member
    Lender · Atlanta, GA · Member since 2015 · 1k+ posts · 200 votes
    1d

    @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.

    0Reply
  • Nyisha Walton
    Lender · Houston, TX · Member since 2026 · 107 posts · 33 votes
    23h

    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.

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    23h

    Hey Kelly,

    You can go up to 80% Cash out on a DSCR loan. Happy to review

    [email protected]818-269-7983
    LuxePrivate Investments LLC 570 Reviews
    WebsiteView Page
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  • Marc Del Priore
    Lender · Philadelphia, PA · Member since 2024 · 46 posts · 16 votes
    20h

    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.

    0Reply
  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 640 posts · 268 votes
    18h

    @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.

    [email protected]
    WEMBO CPA532 Reviews
    WebsiteView Page
    0Reply
  • Dan Duenas
    Lender · Irvine, Orange County · Member since 2026 · 67 posts · 36 votes
    16h

    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

    0Reply
  • Stephen Foster
    Member since 2026 · 15 posts · 3 votes
    10h

    I'm a mortgage broker. The 50% answer is common from credit unions because they're underwriting it like a home equity loan on their own books. What you're describing is really a business-purpose cash-out refinance, and those are sized mostly off each property's appraised value and the rent it brings in, not your personal income. Since you're doing them one at a time, I'd start with whichever property is fully finished and leased. A signed lease and a clean appraisal on a finished unit is what gets you the higher leverage, while a property that's still mid-rehab usually gets valued as-is. Ask each lender three things: (1) How do you handle inherited property? Many will use the new appraised value right away instead of making you wait out a seasoning period, but you'll want your estate paperwork and the deed in order. (2) What's your minimum loan amount? Smaller loans can fall under some programs' floors. (3) Will you close in an LLC, and is there a prepayment penalty? Have your leases, rehab receipts and before/after photos ready, and you'll get real answers instead of rate-sheet maximums.

    0Reply
  • J CastroBusiness Member
    Lender · Florida · Member since 2025 · 759 posts · 266 votes
    9h
    Quote from @Kelly Pfeifer:

    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.

    Hi @Kelly Pfeifer, welcome to BP!
    Having three debt-free rental properties—one single-family home and two duplexes—puts you in an interesting position to explore different financing strategies.

    From a lender's perspective, rather than approaching each property individually, I would recommend exploring a portfolio financing strategy that may allow you to leverage the equity across all three properties.

    We offer DSCR financing, including cash-out refinance options for qualified real estate investors. Depending on the property values, rental income, credit profile, and program guidelines, financing of up to 75%–80% LTV may be available.

    A few factors will determine what's possible:

    • Current appraised value of each property.

    • Existing rental income or projected market rents.

    • Property condition and recent renovations.

    • Borrower credit profile.

    • Whether the properties can be structured under a portfolio loan or financed individually.

    Since all three properties are owned free and clear, there may be an opportunity to access the equity you've built while retaining ownership and continuing to generate rental income.

    I'd be happy to take a preliminary look at the properties and see what financing options we may be able to offer.

    Feel free to send me a private message. We work with real estate investors nationwide, including Arkansas.

    JCREIG Capital Funding
    WebsiteView Page
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  • Connor MaynerBusiness Member
    Lender · Sarasota, FL · Member since 2026 · 9 posts · 1 vote
    7h

    Hi Kelly, we have solutions for exactly this. We arrange DSCR cash-out refinances on rentals, with options up to 75-80% LTV depending on credit, and doing each property as its rehab wraps up works well. I own Ocean Coast Mortgage, and we'll walk you through the whole process from start to finish. Let's connect and set up a quick call.

    Connor

    0Reply
  • David Sheets
    Member since 2026 · 4 posts · 1 vote
    7h

    Kelly, I've flipped over 100 homes myself and done a lot of cash-out refinances on my own properties, so I've sat where you're sitting. A few things from doing it:

    1. The 50% you were quoted is that credit union's in-house limit, not the market's. Investor cash-out loans are sized off the appraised value and the rent each property brings in, not just your personal income, and they can go higher than what a bank keeps on its own books.

    2. Refinance each property as its rehab is finished, like you're planning. The appraiser has to see completed work to give you full value. Appraising a half-done unit gives away equity you've already paid for.

    3. Decide what the cash is for before you pull it. Taking the maximum from all three at once puts debt on properties your family left you free and clear. If it's for the next purchase, pull from the strongest one first and keep the others clean as your safety net.

    4. Make sure title on the inherited properties is in your name (or your LLC's) before you apply. That's the first thing a lender checks.

    My job is to protect what you have and help it grow toward your goals. Send me the three addresses and current or projected rents and I'll tell you what each one can realistically support.

    Dave Sheets, SixtyFour West Capital

    0Reply
  • Erin Bishop
    Member since 2026 · 5 posts · 0 votes
    1h

    You have received many great responses already. To recap, I agree with refinancing each property separately once that unit is completely renovated. 50% is not the industry norm, so find an experienced local lender to help you.

    0Reply
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