Topeka values have climbed steadily, and because Shawnee County reappraises every year, owners see that growth on their valuation notice each spring. For investors who bought rentals years ago, that rising number is equity that can be put back to work through a DSCR cash-out refinance.
In short: LendingStreet offers DSCR cash-out refinances on 1-8 unit rentals in Topeka and Shawnee County up to 75% LTV. The new loan qualifies on the property's rent, not your personal income, and LLC owners are standard. Cash-out seasoning varies by program, and the rent must support the new payment at the 1.0x standard minimum.
Most use the cash to buy more rentals, often in the same neighborhoods they already know. Others fund a renovation, replace an older loan on another property or build reserves for roofs and HVAC systems, which wear out faster in a climate with hot summers, cold winters and regular hail.
Cash-out works best on a property that is leased at market rent and in good condition, because both the appraisal and the rent drive the loan amount.
Some investors also use a cash-out refinance to move a rental from a personal name into an LLC, or to replace a bank note on one property while pulling equity from another. Describe your goal and we can suggest whether one property or several make more sense.
This example is illustrative and not a quote. An investor owns an up-and-down duplex in the College Hill area near Washburn University. It appraises at $260,000 and the investor owes $95,000. Each unit rents for $1,100.
A 75% cash-out loan is $195,000. After paying off $95,000 and estimated closing costs of about $5,850, the investor receives about $94,150. Estimated principal and interest is about $1,330, and with taxes of $340 and insurance of $190 the payment is about $1,860. Rent of $2,200 gives a DSCR of about 1.18x.
| Item | Amount |
|---|---|
| Appraised value | $260,000 |
| New loan at 75% LTV | $195,000 |
| Existing loan payoff | $95,000 |
| Estimated closing costs | $5,850 |
| Cash to investor | About $94,150 |
| New monthly payment | About $1,860 |
| DSCR | About 1.18x |
The county's appraised value and the lender's appraisal are different numbers. The county value sets your taxes; the appraisal sets your loan. They often move in the same direction, but a high county value does not promise a high appraisal, and the appraiser will rely on recent sales of similar rentals.
Use the county value for the tax line in your ratio. Residential property is assessed at an 11.5% assessment ratio, and the local levy applies to that. If your appraised value rose this year, your next tax bill will likely rise too.
If you think the county value is too high, the spring appeal window is the time to act. A successful appeal lowers your tax bill, which improves your ratio on the new loan, and the written decision documents the lower figure.
Most programs require a period of ownership before lending on the full appraised value, and the period varies by program. If you bought recently with cash, delayed financing may let you recover your purchase funds sooner. Our seasoning guide explains the options.
Within the seasoning window, some programs lend on what you paid plus documented improvements rather than the new appraised value. Keep receipts and before-and-after photos of any renovation to support the value.
Topeka landlords deal with hail regularly. If your property had a recent roof replacement through an insurance claim, keep the paperwork; a new roof helps both the appraisal and your premium. If the roof is old or has unrepaired hail damage, the appraiser may note it and the insurer may limit coverage.
Kansas policies often have wind and hail deductibles set as a percentage of coverage. Make sure your policy meets the new loan's requirements, and if the property is near the Kansas River or Soldier Creek, check the flood map.
If your roof is near the end of its life, it can make sense to replace it before refinancing. The new roof can support a higher appraisal and a lower premium, and both feed directly into how much cash the rent can support.
Shawnee County tax bills go out in late fall, with the first half due in December and the second half in May. Depending on when you refinance, the new loan may collect an upcoming tax payment into escrow, which reduces the cash you take home. Ask for an escrow estimate early so your net figure is accurate.
Kansas does not charge a state real estate transfer tax, and a refinance typically involves title insurance and recording fees through a title company.
If you refinance soon after a valuation notice arrives, use the new appraised value for your tax estimate even though the bill based on it will not arrive until late fall.
If you mainly want to replace a short-term or balloon loan, a rate-and-term refinance may allow higher leverage. If the rent barely covers the current payment, adding cash may push the ratio below 1.0x; in that case, take less cash or look at a sub-1.0 program.
If you own several Topeka rentals, refinancing five or more together in a blanket loan can be simpler than several separate cash-out loans.
Also think about what the cash will do once you have it. Money that sits in a bank while you look for the next deal still carries interest, so many investors line up the next purchase first and time the cash-out to match.
Send the address, estimated value, current balance and rent roll. Call (877) 298-1001 or use the form below to get a quote on your Topeka cash-out refinance.
If the cash is meant for a purchase with a firm closing date, tell us that date up front so the refinance can fund before you need the money.
Up to 75% of the appraised value, minus your payoff and closing costs, as long as the rent supports the payment.
No. The loan qualifies on the property's rent, with a 620 minimum credit score.
Seasoning varies by program; delayed financing may help on recent cash purchases.
No. The loan uses a professional appraisal. The county value affects your taxes.
Yes. LLC borrowers are standard.
A completed roof replacement usually helps. Unrepaired damage can hurt the appraisal and insurance.
Yes. Five or more can be combined in a blanket portfolio loan.
Yes. We refinance 1-8 unit rentals throughout Shawnee County, including Auburn, Silver Lake and Tecumseh.
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