Huntington landlords who bought near Marshall or the hospitals years ago often own properties with modest balances and steady rent. A cash-out refinance can turn that equity into the down payment on the next rental.
In short: LendingStreet offers DSCR cash-out refinances on 1-8 unit rentals in Huntington and nearby towns, up to 75% LTV, qualified on the property's rent instead of personal income. Loans start at $150,000 and the standard minimum DSCR is 1.0x. In Huntington, the appraisal and how student or medical leases are documented usually decide how much cash a refinance produces.
Long-time owners of student rentals in Highlawn and the blocks near campus often have properties paid down or paid off. Owners of Southside homes and hospital-area units are in a similar position. Cash-out lets them buy more property without selling what already performs.
Others use cash-out to fund improvements on the same property. A new roof, updated heating or a renovated kitchen can raise rent and value, and the cash comes from equity rather than your savings.
This example is illustrative and not a quote. An investor owns a triplex near Cabell Huntington Hospital appraised at $260,000 with a balance of $90,000. The three units rent for $2,350 combined. A 75% LTV cash-out loan is $195,000.
The new payment, including estimated principal and interest on a 30-year term, taxes of $310 and insurance of $170, is about $1,843. DSCR is about 1.27x and, after payoff and about $6,500 in costs, the investor receives about $98,500. At a smaller 65% LTV loan, the payment would be about $1,662, DSCR about 1.41x and cash about $72,500.
The comparison shows the trade-off clearly. A larger loan produces more cash but a thinner ratio; a smaller loan leaves room for a vacancy or an unexpected tax increase. Many owners near campus choose a middle path because student turnover can leave a unit empty for a few weeks each summer.
| 75% LTV | 65% LTV | |
|---|---|---|
| New loan | $195,000 | $169,000 |
| Monthly payment | $1,843 | $1,662 |
| DSCR | 1.27x | 1.41x |
| Cash to investor | $98,500 | $72,500 |
Student leases are often by the bedroom, signed by several tenants and their parents. For the refinance, gather every current lease and a rent roll that shows total rent per unit. For units leased to residents and hospital staff, one-year leases are common and easy to document. If a unit is vacant at the time of the appraisal, the appraiser's market rent estimate is used.
Huntington has a moderate number of sales, and values can vary block by block. The appraiser will look for similar properties nearby, adjusting for condition, unit count, parking and location relative to campus or the hospitals. Provide a list of improvements with dates and costs, and make sure the property is clean and accessible.
If the property has had recent repairs, make sure permits were closed out with the city. Open permits can delay an appraisal or the title review, and they raise questions about whether the work was finished.
Rentals inside Huntington are taxed in Class IV, with a higher levy than owner-occupied homes, at a 60% assessment ratio. Confirm the current tax figure with the Cabell County assessor before applying. Insurance should be quoted fresh, including flood determination, since some areas near the Guyandotte River and local creeks are in mapped flood zones.
If your last tax bill predates the most recent reappraisal, ask the Cabell County assessor for the current figure. A higher assessment can raise the tax line and change the DSCR on the larger loan.
How long you must own a property before a cash-out uses the current appraised value varies by program. If you bought recently, ask about seasoning before you order an appraisal. Our seasoning guide explains common rules.
If you bought with cash recently, keep the closing statement and receipts for any improvements. Some programs consider your total investment when the property has not been owned long enough to use the full appraised value.
Most Huntington investors use cash-out to buy the next property, renovate an existing one or pay off higher-cost debt.
Keep enough cash after closing for reserves and for turnover costs at the end of each student lease year.
Before you spend the proceeds, run the numbers on the next property as carefully as you did on this one. Cash-out works best as part of a plan: refinance a stabilized rental, buy the next one, stabilize it, then repeat. Taking cash with no clear use adds a larger payment without adding income.
Huntington investors often own property in more than one place, including across the Ohio River in Ohio or the Big Sandy in Kentucky. This page covers West Virginia properties; rules and costs in those states differ, so treat each property under its own state's rules.
Within the Huntington area, owners frequently mix student rentals, hospital-area units and suburban houses. If you own five or more, a blanket portfolio loan can refinance them together, sometimes producing more cash with fewer closings than refinancing one at a time.
Send the address, estimated value, current loan statement, leases and an insurance quote. We will estimate the cash available and the DSCR before you pay for an appraisal. If you own five or more rentals, ask whether a blanket portfolio loan would work better than individual refinances.
Up to 75% of the appraised value, minus your existing loan and closing costs, as long as the rent covers the new payment at the program's minimum DSCR. Lower leverage leaves more room on the ratio.
Yes. Leases by the bedroom are added together per unit. Gather all current leases and a rent roll. Vacant units use the appraiser's market rent estimate.
No. DSCR cash-out loans qualify on the property's rent. Leases and the appraisal confirm the rent.
It varies by program. Ask before ordering an appraisal if you bought recently. Keep receipts for improvements if you bought recently.
Yes, up to 75% LTV subject to the DSCR. This is a common way to fund the next purchase.
With five or more, a blanket portfolio loan can combine them under one loan and one payment. Release provisions apply if you sell one later.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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