Many San Francisco landlords own buildings bought decades ago with little or no debt left. A DSCR cash-out turns that equity into capital without selling, and two local quirks decide how much you can take.
In short: LendingStreet offers DSCR cash-out refinances on San Francisco 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. In San Francisco, a low Prop 13 tax bill often helps the ratio, while long-tenured rent-controlled leases often hold it back, so the right loan size depends on your rent roll.
First, a refinance does not trigger a Prop 13 reassessment. If you bought years ago, your tax bill stays tied to your older assessed value, which keeps the monthly payment lower and the ratio higher than a new buyer would see on the same building.
Second, a pre-1979 multi-unit building usually has tenants under the Rent Ordinance. A tenant who moved in long ago may pay far below market, and we qualify on the leases in place. A building can be worth a great deal and still have modest qualifying rent.
This example is illustrative and not a quote. An owner has held a Mission fourplex for two decades. It appraises at $2,400,000. Two units have long-term rent-controlled tenants paying $1,900 and $2,100; two recently turned over and lease for $3,600 and $3,800. Total rent is $11,400. Because of Prop 13, taxes are only about $700 a month, and insurance is $650. The existing loan balance is $400,000.
At the 75% LTV maximum the ratio is 0.86x, which does not qualify. At 60% it is 1.04x, which clears the standard minimum and produces about $1,040,000 in cash before closing costs. At 50% the ratio rises to 1.22x with about $800,000 in cash, a more conservative choice that leaves room for a vacancy. A sub-1.0 DSCR program can bridge part of the gap toward the 75% figure.
| Item | 75% LTV | 60% LTV | 50% LTV |
|---|---|---|---|
| New loan | $1,800,000 | $1,440,000 | $1,200,000 |
| Estimated principal and interest | $11,975 | $9,580 | $7,984 |
| Taxes (Prop 13 base) and insurance | $1,350 | $1,350 | $1,350 |
| Total monthly payment | $13,325 | $10,930 | $9,334 |
| DSCR at $11,400 rent | 0.86x | 1.04x | 1.22x |
| Cash before closing costs after $400,000 payoff | $1,400,000 | $1,040,000 | $800,000 |
Investors often want the refinanced building held in an LLC. In California, moving title from your own name into an entity can be treated as a change in ownership that triggers reassessment, unless an exclusion such as proportional ownership applies. Losing a decades-old tax base could raise your bill sharply and erase the ratio advantage.
Talk with a California real estate attorney and check the Assessor-Recorder's guidance before you retitle. We can lend to an LLC, but the tax consequence is yours to plan.
If you bought or renovated recently, cash-out seasoning rules decide whether the loan uses the new appraised value or your cost. Requirements vary by program; our seasoning guide explains the common time frames. Long-held San Francisco buildings usually clear seasoning easily.
Cash-out proceeds are business funds. Common uses include buying the next rental, paying off a higher-cost loan, funding a soft-story or capital project on the building, or adding a permitted ADU.
Use the money for the business, not personal or household purposes. Our investor loans are business-purpose loans on non-owner-occupied property.
Appraisers value small multi-unit buildings on comparable sales, adjusted for the rent roll. Two similar buildings can appraise differently if one has several long-term regulated tenants. Expect the appraiser to ask for leases, move-in dates and any pending buyouts.
Unwarranted units, open permits and deferred maintenance can lower the value used for the loan. Clearing them before you apply can increase your cash.
If the building has a pending capital improvement passthrough or a recent Rent Board decision that sets future rents, share it. Documented, approved increases can support the rent picture in a way that a hoped-for increase cannot.
A quick, accurate answer starts with a complete picture of the building. The more precisely the rent roll reflects reality, the fewer surprises at appraisal.
Not every San Francisco rental is rent controlled. Single-family homes and condos are generally exempt from the Rent Ordinance's increase limits, so an owner who has raised rent to market over time may find the ratio more forgiving than on an older fourplex. A single-family home in the Sunset or Parkside bought ten or more years ago often combines a low Prop 13 tax bill with current market rent, which is a strong cash-out profile.
Condos bring their own items: HOA dues count in the payment, and the building's reserves, litigation history and master insurance policy are reviewed. Large special assessments, common in older concrete and high-rise buildings that need repairs, can affect both value and the ratio.
Whatever the property type, the test is the same: the new payment, including taxes, insurance and any HOA, must be covered by the rent at the program's minimum ratio.
Send the address, your estimated value, the rent roll and your cash goal through the form below or call (877) 298-1001. We will show the loan at several sizes and where it meets the ratio. For statewide terms, see our California DSCR cash-out page.
No. A refinance is not a change in ownership. Retitling into an LLC can be, so check before you transfer.
Usually because rent-controlled leases limit qualifying rent, so the larger payment fails the 1.0x minimum. Lower leverage or a sub-1.0 program helps.
Generally no. We use in-place leases for occupied units. Vacant units can use a market rent estimate.
Up to 75% LTV minus your payoff and costs, limited by the DSCR test. Larger balances may have lower maximum LTV; it varies by program.
Possibly, but the unit's income may not count and value may be adjusted. Legalizing first can help.
It varies by program. Long-held buildings usually meet it; recent purchases may be limited to cost basis.
Yes. That is one of the most common uses of cash-out proceeds.
Yes. HOA dues are part of the monthly payment we compare to rent, along with principal, interest, taxes and insurance.
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