Plenty of Bend landlords bought before the run-up and now hold rentals worth close to double their purchase price. The equity is real. The catch is that a cash-out loan has to be paid from rent, and Bend rents did not double alongside values.
In short: LendingStreet offers DSCR cash-out refinances on 1-8 unit rentals in Bend, Redmond and Deschutes County up to 75% LTV, qualified on the property's rent with no W-2s or tax returns, a 620 minimum credit score and LLC borrowers allowed. In Bend, the rent usually limits the loan before the 75% cap does, so most owners size the cash-out to a DSCR they are comfortable with and take the proceeds that fit.
Owners use cash-out proceeds to buy the next rental, often in Redmond, Prineville or out of state where rents go further; to add an ADU to an existing Bend lot; to pay off a higher-cost loan or a line of credit; or to fund repairs like a roof or wildfire-hardening work before an insurance renewal.
Because the loan qualifies on rent, self-employed owners and those with complicated tax returns can refinance without documenting personal income. The money can go to any business purpose.
A cash-out loan can go up to 75% of appraised value, but the new payment still has to clear the program's DSCR minimum, which is 1.0x on standard programs. On a Bend rental with modest rent and a high value, 75% LTV often produces a payment the rent cannot cover. The real ceiling is the loan amount that keeps the ratio at or above 1.0x.
That is why we usually show Bend owners several loan sizes side by side. Sub-1.0 DSCR programs exist for some files, but most owners prefer a cushion, especially with insurance costs rising in Central Oregon.
This example is illustrative and not a quote. An owner bought an east side Bend duplex years ago. It now appraises at $820,000, the remaining loan balance is $240,000, and the two units lease for $2,100 each. Because Oregon limits assessed value growth, taxes are a modest $370 a month; insurance is $190.
At the full 75% cap, the new loan would be $615,000 and the ratio would be about 0.88x, below the standard minimum. Sized to a 1.10x ratio, the loan is about $478,000 and the owner takes out about $238,000 before closing costs. Sized to exactly 1.0x, the loan is about $534,000, with about $294,000 out.
Either version still turns years of appreciation into usable capital. The choice between them is how much cushion you want against a vacancy or a rising insurance premium.
| Item | 75% LTV cap | Sized to 1.10x | Sized to 1.00x |
|---|---|---|---|
| New loan amount | $615,000 | $478,000 | $534,000 |
| Loan-to-value | 75% | 58% | 65% |
| Estimated principal and interest | $4,195 | $3,261 | $3,643 |
| Total payment with taxes and insurance | $4,755 | $3,821 | $4,203 |
| DSCR on $4,200 rent | About 0.88x | About 1.10x | About 1.00x |
| Cash out before closing costs | $375,000 | $238,000 | $294,000 |
Oregon's assessed value limits mean a property owned for many years often carries a tax bill based on an assessed value well below market. A refinance does not change that. For DSCR purposes, that lower tax line raises the ratio and can support a larger cash-out than the same property would in a state that reassesses at market.
If you added an ADU or a major addition, the new improvement was added to the roll separately, so check the current Deschutes County bill rather than an older one.
How long you need to have owned the property before a cash-out based on the current appraised value varies by program. Recently purchased or recently renovated properties may be limited to the purchase price plus documented improvements for a period. See our cash-out seasoning guide for how this works, and tell us your purchase date and any work completed.
Most Bend cash-out files qualify on 12-month leases. If the property is a permitted short-term rental, some programs can use short-term rental income instead, documented by booking history or a projection. Bend's STR permits are limited by spacing rules in residential zones, so confirm your permit is current and transferable rules are understood before relying on it.
If you have moved a former STR to a long-term lease, the new lease is the rent we use.
A common pattern in Central Oregon is to cash out a long-held Bend rental and use the proceeds as a down payment on a Redmond home, a fourplex, or a rental in another state. Each new purchase can be its own DSCR loan, and once you own five or more rentals, a blanket portfolio loan can tie them together.
Think through the combined cash flow. Taking the maximum out of one rental and buying another at full leverage can leave two properties each running close to 1.0x.
Oregon caps annual rent increases on most units more than 15 years old and limits no-cause terminations after the first year. For a cash-out, we use the current leases or market rent, whichever applies under the program. If your in-place rents are below market, they may stay that way for a while, so size the loan on what you collect today.
Long-held Bend rentals are where this shows up most. A tenant who has been in place since before the run-up may pay well under today's market rent, and the increase cap means closing that gap takes years. That lower rent is the number the ratio is built on.
Send the address, estimated value, current loan balance and the rent for each unit. We will show you the loan at several sizes and what each one leaves you in cash. Call (877) 298-1001 or use the form below. Our investor loans are business-purpose loans on non-owner-occupied property.
Up to 75% LTV on standard programs, but the new payment must clear the DSCR minimum. In Bend, the rent often sets a lower ceiling than the LTV cap.
No. A refinance does not change your assessed value. Improvements such as a new ADU are valued separately.
No. The loan qualifies on the property's rent, with a 620 minimum credit score.
Seasoning varies by program. Recent purchases may be limited to cost plus documented improvements for a period.
On some programs, yes, if it operates legally with a current permit and the income is documented.
LLC borrowers are standard. Talk to your attorney or tax advisor about moving title.
We generally size on the rent you collect under current leases, so below-market rents can limit proceeds.
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