Lee County rentals have weathered Hurricane Ian in 2022 and more storms since. Investors in Fort Myers, Cape Coral and Lehigh Acres still hold equity, but insurance, flood zones and repair history now drive how much a DSCR cash-out can deliver.
In short: LendingStreet offers DSCR cash-out refinances on Fort Myers-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 Lee County, insurance and flood costs, storm repair documentation and the condo rules are the items that decide most files.
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.
Cape Coral has thousands of single-family homes, many on canals, popular with long-term and seasonal renters. Lehigh Acres offers lower prices and newer homes. Fort Myers proper has older neighborhoods near downtown and newer communities along the I-75 corridor.
Fort Myers Beach and Sanibel were hit hardest by Ian and are still rebuilding. Estero and Bonita Springs carry higher values, often with HOAs.
Lehigh Acres and inland Fort Myers often have lower insurance costs than canal or beach properties, which can make the ratio easier.
Florida's homestead cap applies only to primary residences. Non-homestead property, including rentals, has a separate annual cap on assessment increases for non-school taxes, but school taxes are not capped, and a sale resets the value to market.
Use the current Lee County bill, and remember that a home bought from a homesteaded owner will see a higher bill.
Lee County bills can include non-ad valorem assessments for things like fire, solid waste or canal maintenance. Include them in your payment.
Wind and flood insurance are the largest variable costs on Lee County rentals. Many homes are in mapped flood zones where flood coverage is required, and roof age, elevation and wind mitigation features drive quotes.
Under FEMA's substantial damage rule, homes in flood zones that were damaged or improved beyond 50% of their value may need to be elevated or brought to current code. Document repairs and permits, since appraisers and insurers will ask.
Florida has tightened inspection and reserve rules for many older condo buildings, and some associations have levied special assessments. Expect a condo questionnaire and budget review.
Short-term rental rules vary by city and HOA. Where nightly rentals are allowed, some programs qualify on projected revenue. Most Cape Coral and Lehigh Acres cash-outs use annual leases.
Seasonal rentals in Southwest Florida often run on shorter terms. For a DSCR loan, an annual lease or market rent is usually easier to document.
Many Lee County HOAs set minimum lease terms or require tenant approval, so read the covenants before relying on any rental income.
This example is illustrative and not a quote. An investor owns a Cape Coral house on an annual lease. It appraises at $400,000 with an existing payoff of $170,000. Rent is $2,750 a month, taxes are $520 a month and wind plus flood insurance is $420.
At 75% LTV the new loan is $300,000, which leaves about $130,000 after the $170,000 payoff, before closing costs. Estimated principal and interest on a 30-year schedule is about $2,098, so the total payment is about $3,038 and the DSCR is about 0.91x, below the 1.0x standard minimum. At 60% LTV the loan is $240,000, the payment drops to about $2,618 and the DSCR is about 1.05x, with about $70,000 in cash before closing costs.
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 | At 60% LTV |
|---|---|---|
| Appraised value | $400,000 | $400,000 |
| New loan amount | $300,000 | $240,000 |
| Existing loan payoff | $170,000 | $170,000 |
| Cash before closing costs | $130,000 | $70,000 |
| Estimated principal and interest | About $2,098 | About $1,678 |
| Taxes and insurance | $940 | $940 |
| Total monthly payment | About $3,038 | About $2,618 |
| DSCR at $2,750 rent | About 0.91x | About 1.05x |
Florida charges documentary stamp tax on new notes and intangible tax on new mortgages, and on a refinance the amount can depend on the new money involved. Ask your title company for an estimate early.
Florida title insurance rates are set by the state, and a reissue credit may apply if the prior policy is recent.
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 Lee 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 Florida cash-out page for statewide details.
Wind and flood insurance raise the payment. When the premium is high, the rent supports a smaller loan.
It can. Completed, permitted repairs help. In flood zones, the 50% rule may require more work.
No. The loan qualifies on the property's rent. You still need a 620 or higher credit score, reserves and entity documents if the property is in an LLC.
Possibly. A smaller loan often clears 1.0x, and sub-1.0 DSCR programs exist for some properties.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Often, yes, but expect a review of the association's reserves, inspections and assessments.
They can apply to new notes and mortgages. Your title company will confirm the amount.
Yes. Canal homes qualify on rent, but seawall condition, flood zone and insurance can affect value and the ratio.
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