Dayton's low purchase prices and steady demand from Wright-Patterson Air Force Base, Premier Health, Kettering Health and the University of Dayton make for strong rent-to-value. A DSCR cash-out refinance can pull equity from those rentals on the rent alone.
In short: LendingStreet offers DSCR cash-out refinances on Dayton-area investment properties with 1-8 units, up to 75% of appraised value. The loan qualifies on rent, not W-2s or tax returns, starts at $150,000 and needs a 620 credit score, and the rent has to cover the new payment at 1.0x on standard programs. In Dayton, Montgomery and Greene County reappraisals, older housing and the loan minimum on lower-priced homes are the items to check.
A cash-out refinance replaces your current mortgage with a larger one and hands you the difference at closing. The new loan can reach 75% of appraised value, and no W-2s or tax returns are needed because the loan qualifies on the property's rent.
The test is simple: monthly rent divided by the full new payment, which covers principal, interest, taxes, insurance and HOA dues. Standard programs need 1.0x or better at the new loan amount, and sub-1.0 programs exist for some properties.
Common uses include the down payment on the next rental, renovation budgets on other properties, paying off short-term bridge or rehab debt and building reserves for the portfolio.
Kettering, Beavercreek, Fairborn, Huber Heights and Riverside draw tenants tied to Wright-Patterson, with Beavercreek and Fairborn in Greene County. Inside Dayton, the Oregon District, St. Anne's Hill, South Park and Belmont have older homes, and the University of Dayton area has student rentals.
Centerville, Miamisburg and Springboro carry higher values. Many lower-priced Dayton houses fall below the loan minimum, so investors often refinance larger properties or several rentals together.
Wright-Patterson is the largest single-site employer in Ohio, and its civilians, contractors and military families keep rents steady in Greene and Montgomery counties.
Rents in the Dayton area are moderate, but so are prices, which keeps the ratio comfortable on many single-family homes.
Ohio counties reappraise every six years with an update at three years, and recent updates in the Dayton area raised many values. Higher values bring higher bills, and school levies differ by district.
Use the current bill from the county auditor. Rentals do not get the owner-occupancy credit.
Greene County and Montgomery County have different rates and school levies, so a Beavercreek rental and a Kettering rental at the same value can carry different bills.
Much of Dayton's housing predates 1978, so lead disclosure applies and appraisers look closely at condition. The 2019 Memorial Day tornadoes damaged homes in Trotwood, Harrison Township, northern Dayton and Beavercreek, and repaired properties should have permits and documentation.
Insurance is moderate in the region, but older roofs and wiring raise premiums. Get a current quote.
Some older Dayton homes have basements with water history. Clean, dry basements help the appraisal.
Dayton and several suburbs have rental registration or inspection rules, and requirements vary by city. Confirm what applies to your address and keep it current.
Military tenants can end leases early on orders, so plan for turnover near Wright-Patterson. Most Dayton cash-out loans qualify on 12-month leases.
Dayton also has vacant property registration rules, so if a unit sits empty for long, check whether registration applies.
Many Dayton investors own several low-priced houses. A blanket portfolio loan can combine five or more rentals into one loan qualified on combined cash flow, which can solve the loan minimum problem.
This example is illustrative and not a quote. An investor owns a Kettering ranch home that appraises at $220,000 with an existing payoff of $70,000. Rent is $1,700 a month, taxes are $330 a month and insurance is $100.
At 75% LTV the new loan is $165,000, which leaves about $95,000 after the $70,000 payoff, before closing costs. Estimated principal and interest on a 30-year schedule is about $1,154, so the total payment is about $1,584 and the DSCR is about 1.07x, above the 1.0x standard minimum.
Before settling on a cash amount, test the ratio at two or three loan sizes. The cash difference between them is often smaller than investors expect, while the extra cushion helps when taxes or insurance rise.
| Item | At 75% LTV |
|---|---|
| Appraised value | $220,000 |
| New loan amount | $165,000 |
| Existing loan payoff | $70,000 |
| Cash before closing costs | $95,000 |
| Estimated principal and interest | About $1,154 |
| Taxes and insurance | $430 |
| Total monthly payment | About $1,584 |
| DSCR at $1,700 rent | About 1.07x |
Ohio has no mortgage recording tax, and the conveyance fee applies to deed transfers, not refinances. Expect title insurance, recording, the appraisal and lender fees.
Montgomery County title work is usually straightforward, but properties that went through tax foreclosure or land bank programs may need extra review before a title insurer will cover a new loan.
How long you have owned the property affects the loan. Seasoning requirements vary by program, so share your purchase date and any renovation costs up front.
Pull these together before you apply.
Our investor loans are business-purpose loans on non-owner-occupied property. Tell us the address, rent, payoff and the cash you need, and we will check the ratio with realistic Montgomery County taxes and insurance before ordering an appraisal.
If the full 75% does not fit, we will show what does, including sub-1.0 programs. Get a quote with the form below or call (877) 298-1001, and see our Ohio cash-out page for statewide details.
At 75% LTV that would be a $112,500 loan, below our $150,000 minimum. Larger properties or a blanket loan on several rentals are options.
Not if repairs are complete and documented. Keep permits and receipts for the appraiser and underwriter.
Seasoning varies by program. Some allow a cash-out soon after purchase; others require several months of ownership or cap the loan at cost plus documented improvements.
None. The rent qualifies the loan. Expect a credit check, a 620 minimum score, reserves and LLC documents if applicable.
You can take a smaller loan, or a sub-1.0 DSCR program may fit on some properties. We will show both options.
Yes. A military tenant's lease counts. Plan for early termination on orders.
Yes. We finance 1-8 unit rentals in Greene and Montgomery counties and across Ohio.
Yes. Student rentals qualify on leases or market rent, as long as the loan is at least $150,000.
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