If you bought a Fort Worth apartment building or retail strip years ago and the rents have grown, the equity is sitting in the property. A cash-out refinance turns some of it into cash you can use, as long as today's NOI can carry the new, larger loan.
In short: LendingStreet offers commercial cash-out refinancing in Fort Worth on stabilized, cash-flow-positive property, including 9+ unit multifamily, mixed-use, retail, office, flex and self-storage. The new loan is sized on current NOI, DSCR and appraised value, with custom terms up to $5M+. In Fort Worth, updated property taxes and insurance often decide how much cash a refinance can actually release.
Cash-out refinancing fits investors who own stabilized income property with meaningful equity: occupancy is steady, leases are in place and the trailing operating statements show NOI that covers debt service with room to spare.
Our investor loans are business-purpose loans on non-owner-occupied property. The property must be leased to tenants, and buildings with 1 to 8 units use our residential DSCR cash-out programs instead.
The refinance starts with a new appraisal and a fresh look at NOI. Underwriting uses the current rent roll, trailing 12 months of operating statements and realistic expenses, then sizes the loan at the lower of the LTV limit for the program and what NOI supports at the target DSCR. Maximum leverage on a cash-out varies by program, property type and balance.
The cash you receive is the new loan minus the existing payoff and closing costs. If NOI is strong relative to value, the LTV limit sets the loan. If taxes and insurance have eaten into NOI, the DSCR test sets it, and the cash available shrinks.
This example is illustrative and not a quote. Rents, expenses and value are assumptions for the math, not Fort Worth market data.
An investor owns a stabilized 16-unit apartment building that appraises at $2,600,000, with $700,000 still owed. Units rent for an assumed $1,400 a month, or $268,800 a year, and an assumed 7% vacancy leaves $249,984 of effective income. Repairs, management and owner-paid utilities are $40,000 and reserves are $4,000.
Using last year's $44,000 tax bill and a $21,000 insurance premium, NOI is $140,984 and the loan at a 1.25x DSCR is $1,300,000, about 50% LTV, releasing roughly $600,000 before closing costs. If the refinance appraisal leads to a higher assessment and taxes rise to $52,000 while insurance renews at $27,000, NOI falls to $126,984, the loan drops to $1,170,000 and cash out falls to about $470,000.
| Item | Current taxes and insurance | Higher taxes and insurance |
|---|---|---|
| Appraised value | $2,600,000 | $2,600,000 |
| Effective income | $249,984 | $249,984 |
| Property taxes | $44,000 | $52,000 |
| Insurance | $21,000 | $27,000 |
| Other expenses and reserves | $44,000 | $44,000 |
| NOI | $140,984 | $126,984 |
| New loan amount | $1,300,000 | $1,170,000 |
| Estimated annual debt service | $112,758 | $101,482 |
| DSCR | 1.25x | 1.25x |
| LTV | 50% | 45% |
| Existing payoff | $700,000 | $700,000 |
| Cash out before closing costs | $600,000 | $470,000 |
Fort Worth property is taxed by the county, the city, the school district, Tarrant County College and the hospital district, all applied to the appraisal district's value. Values can rise year to year, and a recent appraisal for a refinance may support a higher value than the one on your current bill.
Owners can protest the appraised value each year, and many commercial owners do. For underwriting, though, the question is what the taxes will realistically be under the new loan. Bring your current statement, any protest results and the appraisal district account so the figure can be checked.
Insurance is one of the fastest-moving lines on a Fort Worth operating statement. Hail and wind losses across North Texas have pushed premiums and deductibles up, and an older roof can limit options. A refinance usually needs a current policy that meets the loan's coverage requirements, which may cost more than the policy you carry now.
Get a renewal quote before you size your expectations. Like the tax example above, a higher premium lowers NOI and the cash a refinance can release.
Cash-out loans need stabilized income. If you just finished a renovation and units are still leasing, or a major tenant just left, NOI may not support the loan you want yet. Waiting a few months for a clean trailing statement, or refinancing the bridge balance first and pulling cash later, can produce a better result.
For mixed-use and retail property, lease rollover matters too. Several leases expiring soon after closing can reduce the loan amount even if the building is full today. Renewals signed before you apply, with rents and terms in writing, give underwriting firmer income to work from and can make a real difference in the final number.
Texas is a non-disclosure state, so recent Fort Worth sale prices are not public record. The appraiser will lean on sales that can be verified and on the income approach. A clean rent roll, leases and statements that tie to deposits make that income approach easier to support.
Commercial cash-out refinances take longer than residential ones. Appraisal, lease review and often property condition and environmental reports are common. Have these ready:
Send the property, the payoff and your trailing statements through the form below, or call (877) 298-1001. We will rebuild NOI with realistic taxes and insurance, size the loan on DSCR and value, and show you the cash it can release.
It depends on the new appraisal, current NOI and the program's leverage limit. The loan is the lower of the LTV limit and what NOI supports at the target DSCR, minus your payoff.
It has to be stabilized and cash-flow positive, with income supported by trailing statements. Recent lease-up or a major vacancy can delay a cash-out.
They do not rise because of the loan itself, but appraisal district values can increase over time. Underwriting uses a realistic tax figure, not just last year's bill.
Yes, once the property is stabilized. The new loan repays the bridge and may release cash if NOI and value support it.
These are business-purpose loans, so cash is typically used for investment purposes such as buying property, renovations or partner buyouts.
Not for this program. Buildings with 1 to 8 units use our residential DSCR cash-out refinance in Fort Worth.
Yes. A full commercial appraisal is required, along with lease review and often third-party reports.
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