Many Missoula landlords bought before the valley's price run-up and now own rentals worth far more than they owe. A DSCR cash-out refinance turns that equity into cash for the next property without using personal income to qualify.
In short: LendingStreet offers DSCR cash-out refinances on 1-8 unit rentals in Missoula up to 75% LTV, qualifying on the property's rent instead of W-2s or tax returns. Loans start at $150,000 with no stated maximum, require a 620 minimum credit score and can close in an LLC. The size of the cash-out depends on two limits: the LTV cap and whether the rent covers the new payment at the 1.0x standard minimum.
Rentals bought in Missoula five to ten years ago have often gained a great deal of value. Owners use that equity to buy another rental, fund a rehab, pay off a private loan or simply rebuild reserves after a big insurance or tax increase.
Because the loan is based on the property, investors with several rentals or complicated tax returns can qualify on the numbers of the building itself.
Some owners also refinance to move a rental that is still in their personal name into an LLC, taking cash at the same time. Ask how your program handles that transfer before you record a new deed.
The first limit is LTV: up to 75% of the appraised value on a cash-out, sometimes lower on larger balances or 5-8 unit buildings. The second is the ratio: the rent must cover the new principal, interest, taxes, insurance and any HOA dues at the 1.0x standard minimum on most programs.
In Missoula, where values are high compared with rents, the ratio is often the tighter limit on single-family homes. Small multifamily buildings with several rents tend to support more cash.
| Property | Usually the tighter limit | Why |
|---|---|---|
| Single-family home | DSCR | High value compared with one rent |
| Duplex or triplex | Either | Two or three rents help |
| Fourplex | Often LTV | Four rents support a larger loan |
| 5-8 unit building | LTV, which can be lower | Max LTV varies by program |
Cash-out programs set a minimum time you must own the property before the new appraised value can be used, and that period varies by program. If you just finished a rehab, ask about seasoning before you order the appraisal. Our DSCR cash-out seasoning guide explains the common options.
If you bought with cash recently, a delayed financing structure may let you recover your purchase money sooner on some programs.
This example is illustrative and not a quote. An investor bought a fourplex near the university years ago and owes $300,000. It now appraises at $900,000, and the four units lease for $1,500 each, or $6,000 a month. Taxes are $700 a month and insurance is $300.
At 70% LTV the new loan is $630,000. Estimated principal and interest is about $4,298, the total payment about $5,298 and the DSCR about 1.13x. Cash out before closing costs is about $330,000. At the full 75% LTV the loan would be $675,000 and the DSCR about 1.07x, which still clears 1.0x, so the investor can choose more cash or more cushion.
| Item | 70% LTV | 75% LTV |
|---|---|---|
| New loan | $630,000 | $675,000 |
| Pays off existing loan | $300,000 | $300,000 |
| Cash out before closing costs | $330,000 | $375,000 |
| Estimated principal and interest | $4,298 | $4,605 |
| Taxes and insurance | $1,000 | $1,000 |
| DSCR at $6,000 rent | 1.13x | 1.07x |
Montana reappraises residential property on a two-year cycle, and the 2025 legislature changed how residential property is classed, with long-term rentals that meet state rules treated differently from second homes and short-term rentals. If your last bill predates a reappraisal, the new one may be higher.
Underwriting uses the current tax figure, so check the latest notice from the Department of Revenue before you decide how much cash to take.
For a cash-out, lenders look at the leases in place and the appraiser's market rent opinion. If your current tenants pay well below market, the lease rent may be what counts. Bring rent rolls and leases for every unit, and note any units turning over soon.
Room-by-room student leases are harder to use. Whole-unit leases make the ratio easier to support.
Common uses in the valley include a down payment on the next rental, paying off a seller-financed note or contract for deed, funding a rehab on another property, or holding reserves. Since the loan is business-purpose, the cash should go toward investment activity.
Single-family homes are where Missoula cash-out plans most often come up short. A three-bedroom house in the Lower Rattlesnake or Lewis and Clark neighborhood might be worth far more than its owner paid, but one rent has to carry the whole new payment. Once taxes and insurance are included, the ratio often caps the loan well below 75% of value.
There are a few ways to handle that. You can take a smaller amount of cash and keep the ratio at or above 1.0x. You can look at a sub-1.0 DSCR program, which some files qualify for with more reserves or lower leverage. Or you can refinance a multi-unit property instead, where several rents support a larger loan.
Run the numbers before ordering an appraisal. Our DSCR calculator shows the largest payment your rent supports, and we can turn that into a loan amount at a few different structures.
Our investor loans are business-purpose loans on non-owner-occupied property. Send the address, estimated value, current balance, leases and tax bill, and we will show how much cash the rent supports at a few loan sizes. If you own several rentals in the valley, we can also compare a single cash-out with a blanket loan across the group. Call (877) 298-1001 or use the form below.
Up to 75% of the appraised value minus your current balance and closing costs, as long as the rent covers the new payment at the program minimum.
Usually because the rent does not support a larger payment. That is common on single-family homes in Missoula, where values are high compared with rents.
Seasoning varies by program. Some allow cash-out sooner than others, and delayed financing may be an option after a cash purchase.
No. The loan qualifies on the property's rent, not your personal income.
Yes, if it is leased or has a supportable market rent. Whole-unit leases are easier to use than room-by-room leases.
Yes. LLC borrowers are standard on our DSCR programs.
Yes. Max LTV can be lower on 5-8 unit buildings and varies by program.
Yes. A higher tax bill raises the monthly payment used in the ratio, which can lower the loan amount the rent supports. Use your latest Department of Revenue notice when you run the numbers.
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