Many Kanawha Valley landlords bought years ago at low prices and paid their loans down. That equity can fund the next purchase, as long as today's rent still covers a larger payment.
In short: LendingStreet offers DSCR cash-out refinances on 1-8 unit rentals in Charleston and the surrounding valley, up to 75% LTV, qualified on rent rather than income documents. Loans start at $150,000 and the standard minimum DSCR is 1.0x. In Charleston, appraisal comps and the property tax class for rentals usually decide how much cash a refinance can produce.
Long-time owners of East End and Kanawha City rentals often hold properties with small balances or none at all. A cash-out refinance turns some of that equity into cash for repairs, a down payment on another property, or paying off higher-cost debt.
Newer investors who bought, renovated and leased a house with their own cash use cash-out to get that money back out and repeat the process.
Some investors also use cash-out to consolidate. If you financed several rentals with short-term notes or a home equity line on another property, refinancing one free-and-clear rental can pay off that debt and simplify your payments.
Cash-out is capped at 75% of appraised value. From that, subtract the existing loan payoff and closing costs. The new payment, including taxes and insurance, has to be covered by the rent at the program's minimum DSCR, which is 1.0x on standard programs.
Keep in mind that the payment is calculated on the new, larger loan. A property that easily covers a small existing balance may be tighter once the loan is reset at 75% of value, so run the DSCR before you decide how much to take.
| Item | Example |
|---|---|
| Appraised value | $230,000 |
| Maximum loan at 75% LTV | $172,500 |
| Existing loan payoff | $70,000 |
| Estimated closing costs | $6,000 |
| Estimated cash to borrower | $96,500 |
This example is illustrative and not a quote. An investor owns a North Charleston duplex appraised at $230,000 with a $70,000 balance. Combined rent is $1,950 a month. A 75% LTV cash-out loan is $172,500.
Estimated principal and interest on a 30-year term is about $1,206. With taxes of $275 and insurance of $145, the payment is about $1,626 and DSCR is about 1.20x. After payoff and costs, the investor receives about $96,500.
If the same duplex were refinanced at a lower balance, the DSCR would rise and the cash would fall. Many Charleston owners pick a loan size between those two results, keeping a ratio comfortably above 1.0x while still freeing enough money for a down payment on the next rental.
Charleston home values move more slowly than in fast-growing metros, and there are fewer recent sales on many streets. The appraiser will use the closest similar sales, adjusting for slope, parking, condition and unit count. If you have made improvements, give the appraiser a list with dates and costs.
A 2-4 unit property may be compared with other small multi-unit sales and with rent. Make sure leases and the rent roll are current.
Interior condition matters as well. Fresh paint, working systems and clean units photograph well and support the value, while deferred maintenance can lead to repair requirements or a lower number.
How long you must own a property before a cash-out uses the new appraised value varies by program. If you bought recently, ask how seasoning works before ordering an appraisal. Our seasoning guide explains the common rules.
If you bought with cash and renovated, keep the closing statement and receipts. Some programs consider what you have invested when the property has not been owned long.
West Virginia counties reappraise property on a regular cycle, and rentals are taxed at the higher non-owner-occupied class. If your last tax bill predates a reassessment, the new bill could be higher than you are used to. Use the current figure from the Kanawha County assessor in your DSCR math.
Insurance deserves the same check. Premiums on older frame homes and properties near the Kanawha or Elk rivers have changed in recent years, and a current quote, including flood determination, keeps the DSCR estimate realistic.
Cash-out proceeds can go toward another purchase, a rehab or paying off a more expensive loan. Some investors use them as the down payment on a small apartment house, then refinance that building later as well.
Many Charleston investors own duplexes and small apartment houses rather than single-family homes. Cash-out works on 2-4 unit properties the same way, using the combined rent of all units. On 5-8 unit buildings, the maximum LTV can be lower and varies by program.
For multi-unit properties, the appraiser looks at both comparable sales and the rent roll. Make sure leases are current, rents are documented and any vacant units are ready to show. A building with several vacancies may need to be leased up before a cash-out makes sense.
If you own several small properties, consider whether one blanket loan across five or more rentals would produce more cash and fewer closings than refinancing each one separately.
Send the address, estimated value, current loan statement, leases and insurance. We will estimate the cash available and the DSCR before you pay for an appraisal.
If the numbers are tight, we can show how a slightly smaller loan changes the DSCR, so you can choose the balance between cash in hand and monthly cash flow that suits your plans.
Up to 75% of the appraised value, less your existing loan and closing costs, as long as the rent covers the new payment. Your DSCR must still meet the program minimum.
No. DSCR loans qualify on the property's rent, not W-2s or tax returns. Leases and an appraisal confirm the rent.
Seasoning varies by program. Ask before you order an appraisal if you bought recently.
Yes. A free-and-clear rental can be refinanced up to 75% LTV, subject to the DSCR. This is a common way to fund the next purchase.
You can take less cash, add documentation for improvements, or wait for more comparable sales. Supporting documents for recent improvements can help.
Yes. If you own five or more, a blanket portfolio loan may be simpler. That puts several rentals under one loan and one payment.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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