Ohio has long been a cash-flow state for rental investors, and the run-up in values in Columbus, Cincinnati and Cleveland has added equity on top of the cash flow. A DSCR cash-out refinance puts that equity to work on the strength of the rent.
In short: Yes, LendingStreet finances DSCR cash-out refinances on 1 to 8 unit investment property in Ohio, up to 75% LTV, qualifying on the property's rent rather than your tax returns. The rent has to cover the new payment, including taxes and insurance, at the program minimum, which is 1.0x on standard programs, and the minimum credit score is 620. In Ohio, a recent county reappraisal can raise the tax bill sharply, so the current tax figure is often the number that decides your loan amount.
A cash-out refinance replaces your current loan with a larger one. The new loan pays off the old mortgage, and the difference, less closing costs, goes to you. On a DSCR cash-out the new loan can go up to 75% of the appraised value, and it covers 1 to 8 unit rentals: single-family homes, condos, townhomes, duplexes, triplexes, fourplexes and small 5-8 unit buildings.
Approval rests on the debt service coverage ratio: monthly rent divided by the new monthly payment, including principal, interest, taxes, insurance and any HOA dues. A larger loan means a larger payment, so the ratio after cash-out is the one that has to clear the minimum, which is 1.0x on standard programs.
There are no W-2s or tax returns involved, LLC borrowers are standard and 30-year terms are available. The minimum credit score is 620, and you will need reserves after closing.
Columbus has seen strong rent and price growth, with doubles, single-family homes and small multifamily across neighborhoods such as Clintonville, Linden and the Near East Side. Cincinnati has older brick multifamily and two-family homes, Cleveland and Akron have up-and-down doubles and older single-family rentals, and Dayton and Toledo offer lower entry prices with solid rent ratios.
Ohio's side-by-side doubles are a staple of small investor portfolios. As two-unit properties they fit standard DSCR programs, and they often produce strong ratios relative to their value.
Ohio's real property conveyance fee is charged by the county on deed transfers. A refinance where ownership does not change generally does not trigger it, and Ohio has no state mortgage tax. Refinance costs are mainly title insurance, county recorder fees, the appraisal and lender costs.
If you are transferring the property into an LLC as part of the refinance, ask your title company whether the deed qualifies for a conveyance fee exemption.
Ohio counties reappraise property every six years, with an update at the three-year mark. Recent reappraisals in several large counties raised values substantially, and tax bills followed. The owner-occupancy credit only applies to a home the owner lives in, so a rental does not get it.
A refinance does not trigger a reappraisal, but underwriting uses the current bill. If your county just finished a reappraisal, budget on the new number. If you bought from an owner-occupant, the credit came off after the sale, so the bill may be higher than the one you saw when you bought.
Much of Ohio's rental stock predates 1978, and some cities have rental registration and lead rules. Cleveland, for example, requires lead-safe certification for many older rentals. An appraiser or underwriter may ask about code compliance, so have your registration and certifications on hand.
Insurance in Ohio is generally moderate, but older roofs, galvanized plumbing and outdated electrical can raise premiums. Wind and hail from summer storms are the most common claims, so check the deductible as well as the premium.
This example is illustrative and not a quote. An investor owns a side-by-side double in Columbus appraised at $380,000 with an existing loan of $170,000. Rent is $3,200 a month, and taxes and insurance run $720 a month.
At 75% LTV the new loan is $285,000, leaving $115,000 after the payoff and before closing costs. On a 30-year amortization, principal and interest is about $1,944, so the total payment is about $2,664 and the DSCR is about 1.20x, above the 1.0x standard minimum.
The $720 reflects the post-reappraisal tax bill. On the pre-reappraisal bill the ratio would have looked better, but underwriting uses the current figure.
| Item | Amount |
|---|---|
| Appraised value | $380,000 |
| New loan at 75% LTV | $285,000 |
| Existing loan payoff | $170,000 |
| Cash before closing costs | $115,000 |
| Monthly payment (P&I, taxes, insurance) | About $2,664 |
| DSCR at $3,200 rent | About 1.20x |
Seasoning rules vary by program. Some allow a cash-out within a few months of purchase; others measure the loan against your purchase price plus documented renovation costs until you have owned the property for a set period. If you bought with cash recently, delayed financing may be the cleaner route.
The loan amount is also limited by the 75% LTV cap, by the rent covering the new payment, and on 5-8 unit buildings and larger balances, by program-specific LTV limits that can be lower.
Our investor loans are business-purpose loans on non-owner-occupied property, and investors usually use the cash to grow or protect a portfolio:
Gathering these items before you apply keeps the appraisal and underwriting on schedule.
Yes. LendingStreet finances DSCR cash-out refinances on 1 to 8 unit investment property in Ohio, up to 75% LTV, with loans starting at $150,000 and no stated maximum.
The 75% LTV cap, the rent covering the new full payment at the program minimum, and closing costs. On 5-8 unit properties and larger balances, the maximum LTV can be lower.
Generally no. The conveyance fee applies to deed transfers. A refinance with no change in ownership does not trigger it, and Ohio has no mortgage tax. Confirm with your title company.
Underwriting uses the current tax bill. A higher bill raises the payment and lowers the ratio, which can reduce the loan amount the rent supports.
Usually, if it is registered and compliant with city rules. Bring your rental registration and lead-safe certificate; an unresolved code issue can slow the file.
Possibly. Seasoning varies by program, and recent renovation invoices can support the new value. Some programs cap the loan at cost basis until the property is seasoned.
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 held in an LLC.
No. Our investor loans are business-purpose loans on non-owner-occupied property, so the property must be a rental, not your residence.
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