Many Grand Strand investors bought years ago, before the area's growth pushed values up. A cash-out refinance turns that equity into cash for the next purchase without selling the rental, and in South Carolina it does not reset the property's tax value the way a sale would.
In short: LendingStreet offers DSCR cash-out refinances on Myrtle Beach-area rentals of 1 to 8 units up to 75% LTV, qualifying on the property's rent instead of tax returns. The new payment must meet the program's minimum DSCR, standard 1.0x, the minimum credit score is 620, LLC borrowers are standard and 30-year terms are available. Seasoning requirements vary by program.
Investors who bought duplexes in North Myrtle Beach, cottages in Surfside Beach or houses in Carolina Forest and Socastee several years ago often hold far more equity than debt. Selling would mean closing costs, possible capital gains and losing a rental. A cash-out refinance keeps the property and its rent while freeing equity for another purchase, a renovation or storm hardening.
There is also a local tax reason. In South Carolina, a sale is an assessable transfer of interest that lets the county reappraise to the price paid. A refinance is not a transfer, so a long-held rental keeps its capped assessed value, generally limited to a 15% increase per countywide reassessment, unless there are improvements or other triggering changes.
The maximum is 75% of the appraised value, minus your existing loan, closing costs and any required reserves. On larger balances and 5 to 8 unit buildings, maximum LTV can be lower, so it varies by program. The rent must still cover the new, larger payment.
Rate-and-term programs that only pay off existing debt can go up to 80% LTV on some programs, but they do not put cash in your pocket. If you only need to retire a bridge or hard money loan, see our rate-and-term page.
Closing costs on a South Carolina refinance include attorney fees, title insurance, the appraisal and recording fees, plus funding any tax and insurance escrows. Coastal insurance escrows can be large, so ask for an itemized estimate before you count your net proceeds.
| Property value | 75% LTV ceiling | Existing balance | Gross cash before costs |
|---|---|---|---|
| $350,000 | $262,500 | $120,000 | $142,500 |
| $480,000 | $360,000 | $150,000 | $210,000 |
| $650,000 | $487,500 | $250,000 | $237,500 |
This example is illustrative and not a quote. An investor owns a long-term rental duplex in North Myrtle Beach appraised at $480,000, with $150,000 left on the current loan. The two units rent for a combined $3,300 a month.
A new 30-year loan at 75% LTV is $360,000. After paying off the $150,000 balance and about $9,000 in estimated closing costs, the investor nets about $201,000. Estimated principal and interest is $2,456, taxes are $330 and insurance, including wind coverage, is $260, for a total payment of $3,046. At $3,300 in rent, DSCR is about 1.08x, above the 1.0x standard minimum.
| Item | Amount |
|---|---|
| Appraised value | $480,000 |
| New loan at 75% LTV | $360,000 |
| Existing loan payoff | $150,000 |
| Estimated closing costs | $9,000 |
| Estimated cash to investor | $201,000 |
| Estimated principal and interest | $2,456 |
| Taxes and insurance | $590 |
| Total monthly payment | $3,046 |
| Combined rent | $3,300 |
| DSCR | About 1.08x |
A refinance is when many owners discover their insurance cost has climbed. Lenders use the current premium, so a higher wind or flood quote raises the payment and lowers the DSCR, which can cap your loan amount. Shop the policy before the appraisal, and gather roof age, wind mitigation features and any elevation certificate. If the property sits in a flood zone, the new loan will require flood coverage.
If the policy renews soon, ask the agent for the renewal premium as well. Using a figure that is about to rise can leave the file short at closing, and the new escrow will be based on the higher number anyway.
If you bought recently, programs differ on whether they use the appraised value or your purchase price plus documented improvements, and on how long you must own the property first. Investors who bought a Grand Strand rental with cash and want their money back sooner should ask about this early. Our cash-out seasoning guide explains the common rules.
If the property is a short-term rental, some programs qualify the refinance on its rental history or a revenue projection rather than a long-term lease. The property must be legally allowed to operate as a nightly rental under city, county and HOA rules, with the required business license and accommodations tax registration. Strong booking history from past summers helps support the income.
Seasonality also shows up in the numbers. A Grand Strand vacation rental may earn most of its revenue between late spring and early fall, so programs look at a full year of statements rather than a strong summer month. Annual totals, not peak weeks, drive the qualifying income.
Common uses on the Grand Strand include buying another rental inland where prices are lower, replacing an aging roof with a wind-rated one, adding storm shutters or impact windows, or funding the down payment on a beach property. If you own five or more rentals, a blanket portfolio loan can refinance them together on one closing.
Keep an eye on the reserve requirements too. Some programs want several months of payments in the bank after closing, which you can often cover from the cash-out proceeds, but it reduces what you can spend right away.
Send the address, estimated value, current balance, rent and how much cash you need. We will tell you what the ratio supports and whether a lower or higher loan amount fits better. Use the form below or call (877) 298-1001. For statewide guidance, see our South Carolina cash-out page.
Whatever the plan, size the cash-out to what the rent supports comfortably, not only to the 75% ceiling. A slightly smaller loan with a stronger ratio leaves room for an insurance increase at the next renewal.
Up to 75% of the appraised value, minus your existing loan and closing costs. Large balances and 5 to 8 unit buildings can have lower limits, varying by program.
A refinance is not a sale, so it is not an assessable transfer of interest under South Carolina rules. Your assessment generally stays on its existing schedule.
No. The loan qualifies on the rent compared with the new payment.
You can take a smaller loan, or a sub-1.0 DSCR program may fit.
Seasoning varies by program. See our cash-out seasoning guide for common rules.
Yes, on some programs, if nightly rentals are legal at the address and the income is documented or projected.
Yes. LLC borrowers are standard, and you sign for the loan personally.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
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