Boston triple-deckers and two-families in Dorchester, Jamaica Plain and East Boston have gained substantial value, and three rents on one building can carry a large loan. A DSCR cash-out refinance turns that equity into cash without tax returns.
In short: Yes. LendingStreet can refinance a Boston rental with 1-8 units and pay you cash up to 75% LTV, qualifying on the property's rent with no tax returns required. Loans start at $150,000, the minimum credit score is 620 and standard programs need a DSCR of at least 1.0x after the cash-out. In Boston, the rental registry and inspections, Massachusetts lead law, the loss of the residential exemption and the city's ban on investor short-term rentals are the local items.
With a DSCR cash-out refinance, a new loan of up to 75% of the appraised value pays off the old one, and the remaining equity comes to you as cash. Income documents are not part of the file; the rent is.
Underwriting divides rent by the new payment, counting principal, interest, taxes, insurance and any association dues. Because cash-out raises the balance, the ratio drops, and it has to stay at or above the program minimum, 1.0x on standard programs.
Investors use the proceeds to buy another property, fund repairs elsewhere, retire a short-term rehab loan or set aside reserves. The cash comes at closing in one lump sum.
Triple-deckers and two-families are the core of Boston's small rental stock, concentrated in Dorchester, Roxbury, Jamaica Plain, East Boston, Roslindale, Hyde Park, Allston and Brighton. Values often run from the high six figures to well over $1M per building.
Just outside the city, Quincy, Malden, Medford, Revere, Chelsea, Lynn and Somerville have similar multi-family housing. Each city sets its own tax rate and rental rules.
Because three rents support one payment, triple-deckers often produce stronger ratios than single-family homes at similar prices, which is why they are a staple of Boston-area cash-out refinances.
Boston's residential exemption reduces the taxable value of owner-occupied homes only. A building with no owner living in it pays tax on its full assessed value, so an investor's bill can be noticeably higher than the prior owner's.
Massachusetts assessors revalue property annually. Use the current bill without the exemption when running your numbers, and check the same rule in Somerville, Quincy and other cities that offer residential exemptions.
Boston's residential tax rate is lower than its commercial rate, but without the exemption, a high assessed value still produces a large bill.
Massachusetts lead law requires deleading or interim control when a child under six lives in a pre-1978 rental, and most Boston triple-deckers are far older. A letter of compliance helps the file and protects you as a landlord.
Older wood-frame triple-deckers can carry higher insurance premiums, and appraisers look at porches, egress, heating systems and separate utilities. Get a quote for the full building.
Boston requires rental units to be registered with the city and periodically inspected under its rental registration and inspection ordinance. Keep registration current for every unit.
Boston's short-term rental ordinance limits nightly rentals to owner-occupied home-shares, so investor-owned units cannot operate as short-term rentals. A Boston cash-out should be qualified on 12-month leases.
Massachusetts law also sets strict rules for security deposits and last month's rent, including separate accounts and receipts. Keep those records in order, since leases and deposits are part of the file.
This example is illustrative and not a quote. An investor owns a Dorchester triple-decker with all three units leased. It appraises at $1,050,000 with an existing payoff of $420,000. Combined rent is $8,400 a month, taxes without the residential exemption are $960 a month and insurance is $380.
At 75% LTV the new loan is $787,500, which leaves about $367,500 after the $420,000 payoff, before closing costs. Estimated principal and interest on a 30-year schedule is about $5,506, so the total payment is about $6,846 and the DSCR is about 1.23x, above the 1.0x standard minimum.
On many programs the appraiser's market rent estimate is weighed against the lease, so a lease well above market may not count in full. Use current tax and insurance figures, not last year's, when you test your own numbers.
| Item | At 75% LTV |
|---|---|
| Appraised value | $1,050,000 |
| New loan amount | $787,500 |
| Existing loan payoff | $420,000 |
| Cash before closing costs | $367,500 |
| Estimated principal and interest | About $5,506 |
| Taxes and insurance | $1,340 |
| Total monthly payment | About $6,846 |
| DSCR at $8,400 rent | About 1.23x |
Massachusetts deed excise tax applies to sales, not refinances, and there is no mortgage recording tax. Expect lender's title insurance, recording fees, attorney fees, the appraisal and lender fees. Larger balances may need additional review.
Massachusetts closings often involve a closing attorney representing the lender, and title review can take time on older properties with long ownership histories.
Seasoning rules vary by program: some allow a cash-out soon after purchase, while others want several months of ownership or limit the loan to cost plus documented improvements.
Having these ready shortens the time from application to closing.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, estimated value, payoff, rent and how much cash you want, and we will run the ratio at a few loan amounts using realistic taxes and insurance for Suffolk County.
You will get options showing the cash available at each loan size, including sub-1.0 DSCR programs where they fit. Call (877) 298-1001 or use the form below to get a quote. For statewide rules, see our Massachusetts cash-out page.
Yes. Three-unit buildings qualify on the combined rent of all units. On larger balances, maximum LTV can be lower, which varies by program.
No. Boston limits short-term rentals to owner-occupied home-shares, so investor units are qualified on long-term leases.
You can take a smaller loan, or a sub-1.0 DSCR program may fit on some properties. We will show both options.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Up to 75% of the appraised value, minus your payoff and closing costs. The rent also has to cover the new payment at the program minimum, which can limit the amount.
The seller likely received the residential exemption as an owner-occupant. Investor-owned buildings pay on full assessed value.
Yes. We finance 1-8 unit rentals across Greater Boston and Massachusetts, with loans starting at $150,000.
Often. Many triple-deckers support loans above $750,000, and some above $1M. Larger balances get more review and maximum LTV can be lower.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.