Salt Lake County values climbed fast over the last decade, and plenty of Wasatch Front investors now hold houses worth far more than they owe. The catch is that rents did not always keep pace, so the ratio, not the equity, usually sets the cash-out amount.
In short: LendingStreet finances DSCR cash-out refinances on 1-8 unit rentals across the Salt Lake City area, up to 75% LTV, qualifying on rent with no tax returns. The new payment has to be covered at 1.0x on standard programs. Utah taxes rentals on their full value, many homes rely on basement apartment income, and the city limits nightly rentals, so those three items shape most Salt Lake cash-outs.
A cash-out refinance replaces the current mortgage on a rental with a larger loan and hands you the difference. On our DSCR programs the new loan can go up to 75% of the appraised value, and it qualifies on the property's rent instead of your W-2s or tax returns.
The test is the debt service coverage ratio: monthly rent divided by the new payment, which includes principal, interest, taxes, insurance and any HOA dues. Standard programs look for 1.0x or better after the cash comes out, and sub-1.0 programs exist for some files. On the Wasatch Front, rent growth trailed price growth in many neighborhoods, so it is common for the ratio to cap the loan below 75% LTV.
Inside the city, Sugar House, Liberty Wells, 9th and 9th and The Avenues have older bungalows and brick homes, many with finished basements rented as separate units. Rose Park, Glendale, Poplar Grove and the Ballpark area on the west side have lower prices and growing demand. South Salt Lake and Central City add duplexes and small apartment houses near TRAX lines.
Across the valley, West Valley City, Murray, Millcreek, Midvale, West Jordan and Herriman offer newer homes and townhomes. Davis County to the north and Utah County to the south extend the market along the I-15 corridor.
| Area type | Examples | Typical rental | Cash-out watch item |
|---|---|---|---|
| East side city | Sugar House, Liberty Wells, The Avenues | Bungalows with basement units | Legal status of the basement unit |
| West side city | Rose Park, Glendale, Poplar Grove | Smaller single-family, duplexes | Appraisal comps after recent gains |
| Valley suburbs | West Valley, Murray, Millcreek, Herriman | Newer homes, townhomes | HOA dues and leasing rules |
Utah gives primary residences a residential exemption that taxes them on 55% of market value. A rental that is not anyone's primary residence does not qualify, so it is taxed on full value. If you bought from an owner-occupant or moved out of a home you used to live in, the exemption may be removed and the bill can jump.
Counties also run a truth in taxation process each year, and rates differ by city and special district. Use the current notice and confirm that the exemption status on it matches how the property is used. If the county has not yet removed an exemption it should, underwriting will budget the higher figure anyway.
This example is illustrative and not a quote. An investor owns a Sugar House bungalow with a permitted basement apartment, appraised at $600,000 with $280,000 owed. The main floor leases for $2,300 and the basement for $1,300. Taxed at full value with no residential exemption, taxes are about $300 a month; insurance is about $110.
At 75% LTV the new loan is $450,000. After paying off the $280,000 balance, about $170,000 is left before closing costs. Estimated principal and interest on a 30-year schedule is about $3,146, so with taxes of $300 and insurance of $110 the monthly payment is about $3,556 and DSCR is about 1.01x.
At 70% LTV the loan falls to $420,000, the payment to about $3,347 and DSCR rises to about 1.08x, with $140,000 of cash.
Without the basement rent, neither loan would cover the payment, which is why the unit's legal status matters as much as the appraised value.
| Item | 75% LTV | 70% LTV |
|---|---|---|
| Appraised value | $600,000 | $600,000 |
| Loan amount | $450,000 | $420,000 |
| Existing payoff | $280,000 | $280,000 |
| Cash before closing costs | $170,000 | $140,000 |
| Estimated principal and interest | $3,146 | $2,937 |
| Taxes and insurance | $410 | $410 |
| Total monthly payment | $3,556 | $3,347 |
| DSCR at $3,600 rent | About 1.01x | About 1.08x |
Finished basements with a separate entrance are a Salt Lake staple, and a second unit can change the math on a cash-out. Salt Lake City and many suburbs now allow accessory dwelling units, but older basement apartments were not always permitted. The appraiser will look at whether the unit is legal, and underwriting may only count rent on units that are.
Earthquake risk along the Wasatch Fault is real, and unreinforced masonry homes in older neighborhoods can draw insurer questions. Earthquake coverage is usually optional, so ask for a quote and decide whether to include it.
Salt Lake City generally does not allow nightly rentals under 30 days in most residential zones, and enforcement has been active. Most city cash-outs qualify on 12-month leases. Investors who want STR income tend to look at Park City and other Summit and Wasatch county resort areas, which have their own licensing and zone rules, and use our STR program there.
Utah's landlord-tenant law is comparatively landlord-friendly and the state does not allow local rent control, so lease rent is usually close to market. That makes rent schedules on Salt Lake appraisals fairly predictable.
Pull these together first and the file moves faster.
Our investor loans are business-purpose loans on non-owner-occupied property, and we close DSCR cash-out refinances on 1-8 unit rentals in Salt Lake, Davis, Utah and Weber counties. Cash from a refinance can go toward another purchase, repairs or reserves; how you use it is up to you.
Get a quote through the form below or at (877) 298-1001. Share the address, leases, payoff and target cash amount, and we will show the loan size, the estimated payment and the resulting ratio at two or three leverage levels.
Often because the residential exemption was removed. Rentals that are not a primary residence are taxed on full value.
Yes, when the unit is legal. Permits, a separate entrance and egress help the appraiser and underwriter count it.
Generally not within the city, which limits rentals under 30 days in most residential zones. Resort areas with their own rules may work with our STR program.
Yes. DSCR cash-outs work across the Wasatch Front, including Provo, Orem, Layton and Ogden.
Seasoning varies by program. Some allow a cash-out within months of purchase, others want a longer ownership period or cap the loan at the purchase price plus documented improvements. Our seasoning guide covers the common rules.
No. DSCR loans qualify on the rental income of the property. Credit, reserves and LLC documents are still part of the file.
Yes. Business-purpose DSCR loans are commonly made to LLCs, with the members signing for the loan personally.
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