Raleigh and the wider Triangle have grown on the back of Research Triangle Park, three major universities and a steady stream of tech and life-science employers. Rental values have risen with it, and many investors are sitting on equity they could use for the next purchase.
In short: Yes. LendingStreet finances DSCR cash-out refinances on Raleigh-area rentals up to 75% LTV, qualifying on the property's rent rather than your income. The rent must cover principal, interest, Wake County taxes, insurance and any HOA dues at the 1.0x standard minimum. Loans start at $150,000, LLCs are standard and the minimum credit score is 620.
Triangle prices rose steadily for years and jumped in 2021 and 2022. Since then the market has been calmer, with a large wave of new apartments and subdivisions in Wake and Johnston counties keeping rent growth moderate. Values in established Raleigh neighborhoods have generally held up well.
Investors who bought before 2021 usually have solid equity. Because Raleigh prices are higher than in many Southeast metros, the 1.0x ratio, not the 75% LTV cap, is often what sets the loan amount on single-family rentals.
Wake County reappraises property on a periodic cycle, and its most recent revaluation raised assessed values for many owners, with rates adjusted afterward. On a rental, the tax escrow is part of the DSCR payment, so a revaluation can move your ratio.
Rentals in Durham, Orange and Johnston counties follow their own schedules and rates. Check the current bill for the specific county and city, since city taxes in Raleigh, Cary, Apex, Wake Forest or Garner sit on top of the county rate.
North Carolina real estate closings are handled by attorneys, who coordinate title, recording and disbursement. The state's excise tax applies to deeds on a sale rather than a refinance, and there is no state mortgage recording tax. Expect attorney, title, recording and lender fees on a refinance, and confirm totals with your closing attorney.
Neighborhoods around NC State, including the areas off Western Boulevard, Avent Ferry Road and Hillsborough Street, have a large stock of student rentals. Durham near Duke and Chapel Hill near UNC have similar pockets. These houses often rent by the room or to groups.
For a DSCR loan, the appraiser estimates market rent for the property as a whole, which may differ from your by-the-room total. Raleigh also enforces occupancy limits on unrelated tenants in many zones, so confirm your lease structure complies.
This example is illustrative and not a quote. An investor owns a three-bedroom house in North Raleigh appraised at $390,000, owing $200,000. It rents for $2,650 a month. Taxes are about $280 a month and insurance about $135.
At 75% LTV the new loan is $292,500, which pays off the old loan and leaves $92,500 before closing costs. On 30-year amortization, principal and interest is about $1,946. The total payment is about $2,361, for a DSCR of about 1.12x, comfortably above the 1.0x minimum. If the rent were $300 a month lower, the ratio would drop to about 1.00x and the loan would need to shrink slightly to stay at 1.0x.
| Item | Amount |
|---|---|
| Appraised value | $390,000 |
| Loan at 75% LTV | $292,500 |
| Existing loan payoff | $200,000 |
| Cash before closing costs | $92,500 |
| Principal and interest (30 years) | About $1,946 |
| Taxes, insurance and any HOA (monthly) | $415 |
| Total monthly payment | About $2,361 |
| Monthly rent | $2,650 |
| DSCR | About 1.12x |
Cary, Apex, Holly Springs, Fuquay-Varina, Wake Forest, Rolesville and Knightdale have many newer homes and townhomes in HOA communities. Dues count in the payment, and some associations have adopted leasing caps or rental restrictions.
Townhomes are a big share of the Triangle's investor stock. Most are fee-simple and finance like a house, but some are set up as condos, which brings a condo questionnaire and an association review.
Raleigh is far enough inland to avoid direct coastal hurricane exposure, but tropical storm remnants bring wind, falling trees and flooding. Premiums have climbed across North Carolina. Properties near Crabtree Creek, Walnut Creek or the Neuse River may sit in mapped flood zones, where flood insurance is required and counts in the ratio.
Common uses include the following.
Many Raleigh-based investors also own in Durham, where older mill-era houses near downtown and around Duke have drawn steady renovation activity, and in Johnston County towns like Clayton, Smithfield and Selma, where prices are lower and rent relative to value is often stronger. A cash-out on a Raleigh property is a common way to fund a purchase in one of those areas.
Each county has its own tax rate and revaluation schedule, and each city adds its own rate on top. If you own across several counties, a blanket or portfolio loan may also be worth comparing with individual cash-outs, especially once you have five or more properties.
Have these on hand before you apply.
Yes. We finance DSCR cash-out refinances on non-owner-occupied rentals across Raleigh and the Triangle, up to 75% LTV, from $150,000.
Yes, if the property meets program and local rules. The appraiser estimates market rent for the whole property, which may differ from a by-the-room total.
Higher assessed values raised many tax bills, which increases the monthly escrow and can lower the ratio. Use the current bill.
Raleigh prices are higher relative to rent than in many markets, so the 1.0x ratio may cap the loan before the LTV limit does. North Carolina closings are handled by attorneys, so your closing attorney will confirm final costs and net proceeds.
Yes. Fee-simple townhomes finance like houses. Townhomes set up as condos need a condo questionnaire and association review.
Seasoning varies by program. Some allow cash-out soon after purchase; others want several months or limit the loan to cost plus improvements.
No. The loan qualifies on the property's rent. You need a 620 or higher credit score, reserves and entity documents if the property is in an LLC.
Yes. We lend across North Carolina. Each county has its own tax rate and revaluation schedule, so use the current bill for that county and city when estimating the ratio.
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