San Diego landlords often have more equity than almost anywhere in the country. What they usually do not have is rent high enough to support a 75% loan at today's prices, so the honest answer on cash-out size starts with the ratio.
In short: LendingStreet finances DSCR cash-out refinances on San Diego County rentals of 1-8 units, qualifying on rent with no tax returns and no stated maximum loan size. Programs go up to 75% LTV, but in San Diego the rent has to cover the new payment at 1.0x on standard programs, which often caps the loan nearer 55% to 65% of value. Prop 13, the city's STR license tiers and its tenant protection ordinance are the local factors to check.
You keep the property, pay off the existing lien and take the remaining loan proceeds as cash. Loan size is capped at up to 75% of appraised value on cash-out, loans start at $150,000 with no stated maximum, and LLC borrowers are standard.
Because a bigger balance means a bigger payment, the ratio that matters is the one after the refinance: rent divided by principal, interest, taxes, insurance and HOA dues. Most programs want at least 1.0x, with a 620 minimum credit score and no personal income documents. In San Diego the math usually works in reverse: start with the payment the rent can carry, then see what loan that allows.
Mid-city neighborhoods such as North Park, South Park, Normal Heights, City Heights and Kensington have Craftsman homes, duplexes and small apartment houses, many with a granny flat in back. Clairemont and Linda Vista offer post-war ranches popular with ADU builders. Near the coast, Pacific Beach, Ocean Beach and Mission Beach mix long-term and vacation rentals.
Across the county, Chula Vista, National City and El Cajon have lower entry prices; Oceanside, Vista and Escondido serve North County; and La Mesa and Lemon Grove sit along the trolley lines east of the city.
| Area type | Examples | Typical rental | Cash-out watch item |
|---|---|---|---|
| Mid-city | North Park, Normal Heights, City Heights | Duplexes, homes with ADUs | Rent vs. value spread |
| Coastal | Pacific Beach, Ocean Beach, Mission Beach | Cottages, small multi-units, STRs | STR license tier and coastal insurance |
| County cities | Chula Vista, El Cajon, Oceanside, Escondido | Single-family, townhomes | Mello-Roos and HOA dues |
Under Prop 13, your assessed value is set when you buy and rises no more than 2% a year, and a refinance does not reset it. An owner who bought a duplex fifteen years ago may pay a fraction of the taxes a new buyer would, and that lower tax line is often what makes a San Diego cash-out pencil.
Newer communities in Chula Vista's Otay Ranch, parts of North County and other master-planned areas carry Mello-Roos or other special assessments on the tax bill. Pull the full secured bill from the county treasurer-tax collector and use every line.
This example is illustrative and not a quote. An investor owns a North Park duplex now appraised at $1,250,000, owing $500,000. The two units lease for $6,400 combined. Because of a Prop 13 base set at purchase, taxes are about $915 a month; insurance is about $220.
At 75% LTV the new loan is $937,500. After paying off the $500,000 balance, about $437,500 is left before closing costs. Estimated principal and interest on a 30-year schedule is about $6,555, so with taxes of $915 and insurance of $220 the monthly payment is about $7,690 and DSCR is about 0.83x.
At 60% LTV the loan is $750,000 and the payment about $6,379, for DSCR of about 1.00x, with $250,000 of cash.
At 55% LTV the loan is $687,500, the payment about $5,942 and DSCR about 1.08x, still freeing $187,500.
Even at 55% LTV the investor pulls out well over $100,000. Sub-1.0 DSCR programs can sometimes go further, with tighter terms, so the right loan amount depends on how much cushion you want.
| Item | 75% LTV | 60% LTV | 55% LTV |
|---|---|---|---|
| Appraised value | $1,250,000 | $1,250,000 | $1,250,000 |
| Loan amount | $937,500 | $750,000 | $687,500 |
| Existing payoff | $500,000 | $500,000 | $500,000 |
| Cash before closing costs | $437,500 | $250,000 | $187,500 |
| Estimated principal and interest | $6,555 | $5,244 | $4,807 |
| Taxes and insurance | $1,135 | $1,135 | $1,135 |
| Total monthly payment | $7,690 | $6,379 | $5,942 |
| DSCR at $6,400 rent | About 0.83x | About 1.00x | About 1.08x |
The City of San Diego licenses short-term rentals in tiers. Whole-home rentals by an operator who does not live there fall in a tier capped at a small share of the city's housing units, with a separate, higher cap in Mission Beach. Licenses are limited, so a property without one generally cannot qualify on nightly income. Other cities in the county run their own programs.
For long-term rentals, the city's tenant protection ordinance requires just cause for terminations from the start of a tenancy, on top of California's statewide rent cap on many older units. The city also requires a rental unit business tax certificate. Underwriting relies on lease rent the property can legally collect.
Wildfire risk in East County and inland canyons has pushed some carriers out of the market, and some owners rely on the California FAIR Plan with a supplemental policy. Coastal properties can have flood zone and bluff erosion questions. Get a quote early.
San Diego has encouraged ADUs, and a permitted granny flat can add meaningful rent to a refinance. Unpermitted units are a common appraisal problem, so bring the permit history and certificate of occupancy for any backyard unit you want counted.
A complete package gets a cleaner answer the first time.
Our investor loans are business-purpose loans on non-owner-occupied property. We finance DSCR cash-out refinances on 1-8 unit rentals across San Diego County, from Oceanside and Escondido to Chula Vista and El Cajon, and the same team handles purchases and rate-and-term refinances when your next move is a new property.
Send the address, your estimated value, the payoff and current rents through the form below, or call (877) 298-1001. We run the ratio at a few loan amounts, flag the local items above and come back with options, including seasoning-friendly and sub-1.0 programs where they fit.
The program allows it, but the rent has to cover the new payment at 1.0x on standard programs. At San Diego prices, that often limits the loan to roughly 55% to 65% of value.
No. A refinance is not a change in ownership under Prop 13, so the assessed value stays the same.
Only with a valid license for the property. Whole-home STR licenses in the city are capped, and other cities have their own rules.
Yes. DSCR loans have no stated maximum, and our jumbo DSCR programs cover larger balances, though maximum LTV can be lower and review more detailed.
It depends on the program. Some will lend on the new appraised value soon after closing; others limit the loan to cost plus documented rehab until you have owned the property longer.
No. A DSCR loan looks at the property's rent against the new payment, plus credit of 620 or higher and reserves. No W-2s or tax returns are needed.
Yes. LLC borrowers are standard on our DSCR programs, and the members typically sign for the loan personally.
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