A lot of Riverside County rentals were bought between 2010 and 2016 by investors who could not afford the coast. Those homes have gained substantial equity, and a DSCR cash-out can put it to work without selling.
In short: LendingStreet offers DSCR cash-out refinances on Riverside-area rentals of 1 to 8 units, up to 75% LTV, qualified on the property's rent with no W-2s or tax returns. The standard minimum DSCR is 1.0x and the minimum credit score is 620. On a long-held Riverside home, the actual limit is usually the rent: the new payment has to be covered at the program's ratio, and any PACE lien on the tax bill typically has to be paid off at closing.
The typical borrower owns a single-family rental in Corona, Riverside, Moreno Valley, Eastvale or Menifee that was bought years ago, or a duplex or fourplex in the older parts of the city. Rents have risen, the loan balance has fallen, and the owner wants capital for another purchase, a renovation, or to pay off higher-cost debt.
Because the loan qualifies on the property's rent, your personal income and tax returns are not part of the file. LLC borrowers are standard, and you sign for the loan personally.
Many of these owners live in Los Angeles or Orange County and manage their Riverside rentals from a distance or through a property manager. That is fine for a DSCR loan. What matters is the lease, the property and its condition, not where you live. Our investor loans are business-purpose loans on non-owner-occupied property.
Every cash-out has two limits. The first is 75% of appraised value. The second is the largest loan whose payment, plus taxes, insurance and any HOA, the rent covers at the required ratio. On many Riverside single-family homes, the second limit is lower, so it decides your cash.
A low Prop 13 tax bill helps. Because a refinance does not trigger reassessment, a home bought in 2013 still pays taxes based on its older assessed value, which leaves more of the rent for principal and interest.
This example is illustrative and not a quote. An investor owns a Corona single-family rental that appraises at $760,000 and leases for $3,600 a month. Taxes on the older assessed value are about $480 a month and insurance is $175. The existing mortgage balance is $210,000, and the tax bill also carries a PACE assessment for rooftop solar with a payoff of $18,000.
The 75% LTV ceiling would allow $570,000, but at a 1.00x ratio the rent supports a loan of about $442,656. The investor takes $442,000. After paying off the mortgage and the PACE assessment and covering estimated closing costs, about $202,950 comes back as cash. A sub-1.0 DSCR program could stretch further, with tradeoffs.
| Item | Amount |
|---|---|
| Appraised value | $760,000 |
| Maximum at 75% LTV | $570,000 |
| Largest loan at a 1.00x ratio | $442,656 |
| Loan chosen | $442,000 |
| Existing mortgage payoff | $210,000 |
| PACE solar assessment payoff | $18,000 |
| Estimated closing costs | $11,050 |
| Estimated cash to the investor | $202,950 |
| New total monthly payment | $3,596 |
| DSCR at $3,600 rent | 1.00x |
PACE financing was widely used in the Inland Empire for solar, HVAC, windows and roofs. It is repaid through the property tax bill, and most refinance programs require it to be paid off at closing because it takes priority over the mortgage. Leased solar systems are different: they are usually a contract with a fixture filing, and the lease terms decide what happens at refinance.
Check your tax bill and title report before you apply, and include any payoff in your cash estimate.
If you bought or finished a renovation recently, seasoning rules decide whether the loan uses the new appraised value or your cost basis. Time frames vary by program, and our seasoning guide covers the common rules. Owners who have held for years typically clear seasoning without issue.
If you bought a Riverside property at a trustee sale or as a distressed purchase and renovated it, the gap between cost and appraised value can be large. Seasoning rules decide how much of that gap you can use, so check the time frame before you plan the next purchase around the proceeds.
We qualify on the lease in place. Under California's Tenant Protection Act, covered units have annual increase limits, so a long-term tenant's rent may trail the market. Some single-family homes and condos can be exempt if the owner meets the conditions and has given the required notice. If your current rent is well below market, a refinance at turnover may produce a larger loan.
Cash-out proceeds are business funds. Riverside investors commonly use them to buy another rental, to fund a fix and flip, to add a permitted ADU that creates a second rent, or to pay off short-term debt on another property.
An ADU on a large Riverside lot is a popular choice because it can raise the property's total rent, which helps the next refinance as well as cash flow. Make sure the ADU is permitted before you count its income.
Your new loan needs adequate hazard insurance. In parts of Riverside County, carriers have pulled back and some owners have moved to the FAIR Plan. If your premium has risen since you bought, use the new figure in your numbers, since it lowers the ratio.
The appraisal will also note condition. Original roofs, older HVAC systems and deferred exterior maintenance can affect both value and insurability. Fixing a small item before the appraiser visits is usually cheaper than accepting a lower value.
Send the address, estimated value, current lease, mortgage statement and latest tax bill through the form below, or call (877) 298-1001. We will calculate both ceilings and show the cash you can expect. For statewide terms, see our California cash-out page.
Up to 75% of value minus payoffs and costs, limited by the DSCR test. On many single-family homes, the ratio is the tighter limit.
No. A refinance is not a change in ownership under Prop 13, so your assessed value stays the same.
Usually, yes. PACE liens take priority over the mortgage, so most programs require them to be paid off at closing.
Leased systems are handled under the lease contract. Bring the agreement so we can review it.
It varies by program. Long-held properties typically meet it.
Yes. Cash-out refinances cover 1 to 8 unit properties, qualified on combined rent.
Yes. That is one of the most common uses.
No. The loan qualifies on the property's rent.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.