Many Volusia County landlords bought before the run-up in Florida prices and now hold rentals worth far more than they paid. A DSCR cash-out refinance can unlock that equity. In Florida it has one quiet advantage over selling and buying again: a refinance does not reset the property's assessed value.
In short: LendingStreet offers DSCR cash-out refinances on 1-8 unit rentals in Daytona Beach and across Volusia County up to 75% LTV, qualifying on rent with no W-2s or tax returns. The standard minimum DSCR is 1.0x at the new payment, the minimum credit score is 620 and LLC borrowers are standard. In Daytona, today's insurance premium often limits how much cash the rent can support, so many owners take less than the maximum.
Florida caps annual increases in assessed value on non-homestead property at 10% for non-school taxes, and the assessment resets toward market value when the property sells. Investors who have held a rental for years often have an assessed value well below market as a result. A refinance is not a sale, so the existing assessment and its cap stay in place.
That makes cash-out especially useful here. Selling a long-held rental and buying another usually means a new, higher tax bill on the replacement property, while pulling cash from the one you own keeps the lower bill working for you.
This example is illustrative and not a quote. An investor has owned a mainland Ormond Beach duplex for many years. It now appraises at $520,000, the remaining mortgage is $140,000 and each side rents for $1,750, so qualifying rent is $3,500. Because of the assessment cap, taxes are only $310 a month; a new buyer would likely pay closer to $640. Insurance is $420 a month.
At 75% LTV the new loan would be $390,000, with estimated principal and interest of about $2,687 and a total payment of about $3,417, for a DSCR of about 1.02x, below the 1.0x minimum. At 65% LTV the loan is $338,000, the total payment about $3,059 and DSCR about 1.14x. That still frees about $198,000 before closing costs, and the low tax bill is a big reason it works.
The example shows the typical Daytona trade-off. Value would allow a bigger loan, but insurance and the larger payment cap what the rent can carry. Running the ratio at two or three loan amounts before ordering the appraisal saves time and avoids surprises.
| Item | 75% LTV | 65% LTV |
|---|---|---|
| New loan | $390,000 | $338,000 |
| Existing payoff | $140,000 | $140,000 |
| Gross cash before costs | $250,000 | $198,000 |
| Estimated principal and interest | $2,687 | $2,329 |
| Taxes (capped) and insurance | $730 | $730 |
| Total monthly payment | $3,417 | $3,059 |
| DSCR at $3,500 rent | About 1.02x | About 1.14x |
Florida charges documentary stamp tax on new promissory notes at 0.35% and a nonrecurring intangible tax on new mortgages at 0.2%. On the $338,000 loan in the example, that is roughly $1,183 in note stamps and $676 in intangible tax. Title insurance, the appraisal and escrow deposits for taxes and insurance add to closing costs. Budget them when you estimate net cash.
Insurance has risen sharply across coastal Florida, and a policy written years ago can renew much higher. Since the ratio uses current premiums, get your next renewal figure or a new quote before you pick a loan amount. A wind mitigation inspection, a newer roof or opening protection can earn credits that improve the result. If the property is in a flood zone, the flood premium counts too.
Lenders also require adequate coverage on the new loan, including windstorm coverage. If your current policy has limited wind coverage or a very high deductible, ask early whether it meets the program's requirements.
Some owners use part of the cash-out to make the property itself cheaper to insure, such as replacing a roof or adding impact windows. Because the appraisal and insurance are based on current condition, that work helps future refinances more than the current one.
Cash-out seasoning, the time you must own a property before the lender uses the current appraised value, varies by program. Investors who bought and renovated within the past year, a common pattern after the 2022 storms, should ask how their program treats the purchase price and rehab costs. Our seasoning guide covers the common rules.
Mainland properties farther from the coast generally carry lower wind premiums than beachside ones, so the same rent can support more cash on a Port Orange or DeLand rental than on a beachside building.
Some programs can qualify a short-term rental's cash-out on projected or historical rental income. That only works where rentals of that length are legal: Daytona Beach, Volusia County and nearby cities restrict short stays in many residential zones under rules that predate Florida's 2011 preemption. Bring the state vacation rental license, local tax registration and booking history.
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Proceeds commonly go toward another rental, renovations or paying off short-term debt on a different property. If you buy another Volusia property with the cash, remember that its taxes will reset at purchase, so run both properties' numbers together.
Our investor loans are business-purpose loans on non-owner-occupied property, and proceeds typically fund business purposes such as another rental, renovations or paying off short-term debt. Send the address, value estimate, balance, rents, tax bill and insurance. We will show you the cash and ratio at several loan amounts. See also DSCR cash-out refinance in Florida, or use the form below.
A refinance is not a sale, so it does not reset your assessed value. Taxes still change with millage rates and the annual cap.
Up to 75% of the appraised value minus your payoff and costs, if the rent clears the program's ratio at the new payment.
Documentary stamp tax on the new note and intangible tax on the new mortgage generally apply to the new loan amount.
Because insurance and the larger payment can push the ratio below the minimum. A smaller loan often still frees meaningful cash.
On some programs, if the property can legally operate as a short-term rental and is licensed.
No. The loan qualifies on rent.
Seasoning varies by program; see our seasoning guide or ask us.
Yes. We offer DSCR cash-out refinances on 1-8 unit rentals across Volusia County.
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