Columbia rentals have built steady equity over the last decade, and many investors hold duplexes and small houses with modest loan balances. A DSCR cash-out refinance turns some of that equity into cash for the next purchase, qualifying on the rent instead of your income.
In short: LendingStreet offers DSCR cash-out refinances on 1-8 unit rentals across the Columbia, SC metro up to 75% LTV. The loan qualifies on the property's rent with a 1.0x standard minimum DSCR and a 620 minimum credit score, with no W-2s or tax returns required. Loans start at $150,000, LLC owners are standard and seasoning varies by program.
The most common use is funding the next property: equity from a paid-down duplex in West Columbia becomes the down payment on a house near Fort Jackson or a small building near USC. Investors also cash out to fund repairs across several rentals, to pay off a higher-cost private or seller-financed loan, or to buy out a partner.
Because DSCR loans qualify on the property, investors whose tax returns show little income after depreciation can still qualify.
Others refinance to replace a seller-financed note on an older rental, or to restructure a loan with a balloon payment coming due, taking modest cash along the way.
In each case, the investor keeps the property and its income, while unlocking equity that would otherwise sit idle.
South Carolina counties reassess on a five-year cycle, and increases in a property's taxable value between reassessments are generally capped at 15%. That cap can be lost when there is an assessable transfer of interest, such as a sale, and the property is then reappraised at market value.
A refinance is not a transfer, so a cash-out alone should not reset your assessment. Moving title from your personal name into an LLC, or certain changes in LLC ownership, can be treated as an assessable transfer in some cases. Talk with your closing attorney or tax advisor before retitling as part of a refinance.
Ask the county assessor's office what the next reassessment year is for your county. Knowing when a value change is likely helps you set a realistic tax figure in the refinance.
This example is illustrative and not a quote. An investor owns a West Columbia duplex that appraises at $310,000, with both units leased at $1,250 for $2,500 a month. The existing loan balance is $90,000. Taxes at the 6% assessment ratio are $400 a month and insurance is $160.
At 75% LTV, the new loan is $232,500. Estimated principal and interest is about $1,626, the total payment is near $2,186 and the DSCR is about 1.14x. After paying off the $90,000 balance and about $6,500 in closing costs, the investor receives about $136,000.
Because the duplex's rent is comfortably above the payment, the 75% LTV limit, not the rent, sets the loan amount here. That is often the case on Columbia duplexes bought years ago at lower prices.
| Item | Amount |
|---|---|
| Appraised value | $310,000 |
| New loan at 75% LTV | $232,500 |
| Existing balance paid off | $90,000 |
| Estimated closing costs | $6,500 |
| Cash to investor | $136,000 |
| Total monthly payment | $2,186 |
| DSCR at $2,500 rent | 1.14x |
In Shandon, Rosewood and Earlewood, renovated and unrenovated houses sit side by side, and values can differ widely on the same street. Give the appraiser a list of improvements with dates and costs, including roof, HVAC, wiring, plumbing and crawl space work. Near USC, recent sales of similar small multi-unit properties help support value.
Pictures help too. Interior photos of renovated kitchens and baths give the appraiser something concrete when nearby sales are mixed.
The cash available is capped by 75% of value and by the rent covering the new payment. On a rental with higher taxes at the 6% assessment ratio, the rent test can bind first. If it does, a slightly lower loan amount, a sub-1.0 program, or updated leases at current market rent can help.
The rent test uses the full monthly payment, including taxes at the 6% assessment ratio, insurance and any HOA, so make sure each of those figures is current before you apply.
If you bought or renovated recently, seasoning rules decide whether the loan is based on appraised value or your cost. Requirements vary by program; see our seasoning guide. If you just finished a rehab and mainly need to repay a short-term loan, a rate-and-term refinance may allow higher leverage.
Bring the closing statement from your purchase and every rehab invoice. Those documents decide which value the loan can use.
If title is held by an LLC, include the operating agreement and any amendments showing who the current members are.
It is tempting to take every dollar a rental will support. A better plan leaves a cushion. Older Columbia houses need roofs, HVAC systems and crawl space work on a schedule you do not control, and student or military turnover can leave a unit empty for a month or two. A lender on your next purchase will also want to see reserves after closing.
Many investors take a little less than the maximum, keep several months of payments across their portfolio in the bank, and put the rest to work on the next deal. A ratio comfortably above 1.0x also leaves room if taxes rise at the next countywide reassessment.
LendingStreet refinances rentals across Richland, Lexington and Kershaw counties. Our investor loans are business-purpose loans on non-owner-occupied property. Use the form below to send the value, rents and cash you need, and we will show the payment at more than one loan amount.
Up to 75% of appraised value, minus existing liens and costs, as long as the rent covers the new payment at the program minimum.
A refinance alone is not an assessable transfer of interest. Changing title, such as moving into an LLC, can be in some cases.
No. DSCR loans qualify on the property's rent.
Seasoning varies by program. See our seasoning guide.
Yes. All units' rent counts on 2-8 unit properties.
With five or more properties, a blanket portfolio loan can refinance them together.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Yes. Proceeds from a business-purpose cash-out refinance can be used for another investment, wherever it is.
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