Louisiana investors own shotgun doubles in New Orleans, single-family rentals around Baton Rouge and Lafayette, and older homes in Shreveport. A DSCR cash-out refinance can pull equity from them, as long as the rent covers a payment that includes Louisiana insurance.
In short: LendingStreet offers DSCR cash-out refinances on Louisiana rentals of 1 to 8 units, lending up to 75% of appraised value and qualifying on rent, not W-2s or tax returns. Loans start at $150,000 and the standard minimum DSCR is 1.0x. In Louisiana, the wind and flood insurance quote decides more files than any other line, so get it before you apply.
A cash-out refinance replaces your existing loan with a larger one. The appraisal sets the value, the program caps the loan at up to 75% of it, and whatever is left after the payoff and closing costs comes to you.
Approval rests on the rent, not your income. Divide the monthly rent by the new principal, interest, taxes, insurance and HOA dues; on standard programs that ratio needs to be at least 1.0x after the new, higher balance is in place. Credit, reserves and the property itself still matter, but your personal income does not.
New Orleans is known for its shotgun singles and doubles, Creole cottages and raised homes in neighborhoods such as Bywater, Mid-City, the Irish Channel and Gentilly. Doubles are a classic investor property, with two units under one roof.
Baton Rouge has steady demand from LSU, state government and the petrochemical corridor, with suburbs like Prairieville and Denham Springs. Lafayette, Lake Charles, Shreveport-Bossier City, Houma and Monroe offer lower prices and single-family rentals. Lake Charles rebuilt extensively after Hurricanes Laura and Delta in 2020.
Louisiana does not have a statewide transfer or mortgage tax, and refinance closing costs are usually moderate. New Orleans charges a documentary transaction tax on certain recorded documents, and parish recording fees apply. Ask your title company for the full estimate.
Your term sheet and closing disclosure list lender costs separately from title, recording and government charges, so you can see exactly what the cash-out costs and how much of the equity reaches you.
| Closing item | How it usually works in Louisiana |
|---|---|
| State transfer tax | None at the state level |
| Local document fees | Some parishes, including Orleans, charge fees on recorded documents |
| Parish recording | Clerk of court fees to record the new mortgage |
| Title and settlement | Lender title policy and notary closing fees |
| Escrow setup | Deposits for parish taxes, insurance and flood coverage |
Louisiana property taxes are assessed by each parish assessor. The homestead exemption is substantial and applies only to the owner's primary residence, so a rental is taxed on more of its value than a comparable owner-occupied home.
If you bought from an owner-occupant, the bill can rise sharply once the exemption comes off. Ask the assessor for the property's assessed value as a non-homestead and use that figure in the ratio.
Louisiana has some of the highest insurance costs in the country after a string of hurricanes. Several carriers left the market, and many properties are written through the state's insurer of last resort or specialty carriers. Wind deductibles are often a percentage of the dwelling coverage.
Large parts of the state sit in flood zones, and flood insurance is generally required there. Elevation certificates can make a big difference in the flood premium, so locate yours before you request quotes.
This example is illustrative and not a quote. An investor owns a renovated shotgun double in Mid-City appraised at $420,000 with $170,000 left on the current loan. Each side rents for $1,700. Rent is $3,400 a month and parish taxes, wind and hazard insurance, and flood insurance come to $900 a month.
At 75% LTV the new loan is $315,000. Paying off the $170,000 balance leaves $145,000 before closing costs. On a 30-year term, principal and interest is about $2,149, so the full payment is about $3,049 and the DSCR is about 1.12x, above the 1.0x standard minimum.
Put another way, rent would have to fall below about $3,049 a month before this loan dropped under 1.0x, a cushion of roughly $351 a month. Running the same check on your own numbers shows how much cash the rent can actually support.
If the insurance renewal came in $250 a month higher, the ratio would drop to about 1.03x. That is why a current quote matters more in Louisiana than almost anywhere else.
| Item | Amount |
|---|---|
| Appraised value | $420,000 |
| Loan at 75% LTV | $315,000 |
| Existing loan payoff | $170,000 |
| Cash before closing costs | $145,000 |
| Principal and interest | About $2,149 |
| Taxes, insurance and flood | $900 |
| Total monthly payment | About $3,049 |
| DSCR at $3,400 rent | About 1.12x |
New Orleans has tightened its short-term rental rules over the years. In most residential areas, a short-term rental permit generally requires the owner to live on site, and the city limits the number of permits by block in many areas. Commercial and mixed-use zones follow different rules.
For investors, that usually means a New Orleans property is refinanced on long-term rent. If you rely on nightly income, confirm the permit type and status first, because the underwriter will.
If you bought or finished a rehab recently, the seasoning rules matter. Depending on the program, a recent purchase may qualify on the appraised value right away, or the loan may be held to cost plus documented improvements for the first several months.
Your cash is the smaller of what 75% LTV allows and what the rent can carry at 1.0x or better. Larger loans and 5-8 unit buildings can have lower LTV caps, which vary by program.
If you are unsure which limit applies to you, send the purchase date, rehab costs and rent through the form below and we will run both.
Having these ready shortens the timeline and avoids surprises at the appraisal.
Yes. We finance DSCR cash-out refinances on non-owner-occupied 1-8 unit rentals across Louisiana, up to 75% LTV, qualified on rent.
Premiums for wind, hazard and flood are part of the monthly payment. In Louisiana they are often high enough to change how much cash the rent can support.
Only if it holds a valid permit for the use. In most residential areas the city generally requires the owner to live on site, so investor properties are usually underwritten on long-term rent.
No. The exemption applies to a primary residence. Rentals are taxed without it, so budget the higher bill.
No. The loan qualifies on the property's rent. You will still need a 620 or higher credit score, reserves and entity documents if the property is held in an LLC.
It depends on the program. Some allow cash-out shortly after purchase; others require several months of ownership or limit the loan to cost plus documented improvements. Our seasoning guide covers the details.
You can take a smaller loan to bring the ratio up, or look at sub-1.0 DSCR programs, which exist for some properties and borrowers with stronger profiles.
Yes. With no existing loan to pay off, proceeds are up to 75% of appraised value less closing costs, still subject to the rent covering the new payment.
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