Arizona investors hold everything from Mesa single-family rentals to Scottsdale vacation homes. A DSCR cash-out can qualify either one, using long-term rent or projected short-term rental revenue.
In short: Yes, LendingStreet finances DSCR cash-out refinances on investment property in Arizona, up to 75% LTV, qualifying on the property's rent. Long-term rentals qualify on the lease or market rent, and short-term rentals can qualify on projected revenue, with STR DSCR rates from 6.49% for qualified borrowers. The post-cash-out ratio must clear the program minimum, 1.0x on standard programs. No W-2s or tax returns are required.
The first decision on an Arizona cash-out is which income the loan will be based on. A long-term rental uses the current lease or the appraiser's market rent. A short-term rental can use projected revenue, which often supports a larger loan in Scottsdale, Sedona or Flagstaff, but programs apply their own adjustments to that projection.
If a property could work either way, run both. A smaller cash-out on long-term rent is sometimes more reliable than a larger one built on an aggressive STR projection.
This example is illustrative and not a quote. An investor owns a vacation rental appraised at $550,000 with a $300,000 existing loan. After the program's adjustments, the qualifying income from projected revenue is $4,000 a month. Taxes and insurance are $450 a month.
At 75% LTV the new loan is $412,500, leaving $112,500 after the payoff, before closing costs. At a sample rate of 7.5% on 30-year amortization, principal and interest is about $2,884. The total payment is about $3,334 and the DSCR is about 1.20x, above the 1.0x standard minimum. How projected revenue is calculated varies by program, so the qualifying figure is the number to confirm.
| Item | Amount |
|---|---|
| Appraised value | $550,000 |
| New loan at 75% LTV | $412,500 |
| Existing loan payoff | $300,000 |
| Cash before closing costs | $112,500 |
| Total monthly payment | About $3,334 |
| DSCR at $4,000 qualifying income | About 1.20x |
Arizona state law limits how far cities and towns can restrict short-term rentals, but many cities, including Scottsdale, Phoenix and Sedona, now require STR permits or licenses, and the state requires tax registration for rental income.
HOAs are a separate layer. Many master-planned communities in the Phoenix metro have minimum lease terms or rental restrictions in their CC&Rs. Confirm both the city permit and the HOA rules before relying on nightly income.
The Phoenix metro, including Mesa, Chandler, Gilbert, Glendale, Peoria and Tempe, is the center of Arizona's long-term single-family rental market. Tempe adds student rentals near Arizona State. Scottsdale is the state's best-known short-term rental market.
Tucson offers lower prices and rental demand tied to the University of Arizona and Davis-Monthan Air Force Base. Flagstaff and Sedona draw vacation renters and have tighter housing supply.
Arizona property taxes are moderate compared with many states, which often helps the ratio. HOA dues, common in newer subdivisions, count in the payment and can offset that advantage.
Pools are common and affect insurance and maintenance. Air conditioning is essential in the desert, so expect the appraiser to note the age and condition of HVAC systems.
If you bought or furnished an STR recently, seasoning rules matter. Some programs allow cash-out with little or no seasoning at appraised value; others want several months of ownership or cap the loan at purchase price plus documented improvements.
Furniture usually is not counted as a property improvement. Keep receipts for permanent work like kitchens, pools and flooring.
Bring the lease or, for an STR, booking history and a revenue projection, the city STR permit, HOA documents, an insurance quote, a mortgage statement and your LLC documents. Recent bank statements show reserves.
Our financing team can run the deal on both long-term and short-term income and come back with 2-3 options.
Yes. LendingStreet finances investment property in Arizona, including DSCR cash-out refinances up to 75% LTV on non-owner-occupied rentals, from $150,000.
Yes, if the property is permitted to operate as a short-term rental and the HOA allows it. STR programs can qualify on projected revenue.
Booking history helps support the projection. How programs weigh history versus projections varies, so send both with your scenario.
Yes. If the HOA bans short-term rentals, the loan has to be based on long-term rent, which may support a smaller cash-out.
Up to 75% of the appraised value, minus your existing loan and closing costs, as long as the rent covers the new payment at the program minimum.
No. DSCR loans qualify on the property's rent or projected revenue. You need a 620 or higher credit score, reserves and entity documents if borrowing in an LLC.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
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