Indianapolis is one of the most active rental investor markets in the Midwest, with affordable prices and Indiana's 2% tax cap on rentals. A DSCR rate-and-term refinance replaces short-term debt on a leased Indianapolis rental with long-term financing based on the rent.
In short: Yes. LendingStreet refinances leased 1-8 unit rentals in Indianapolis with DSCR rate-and-term loans that pay off hard money, bridge or existing debt without taking cash out. Loans start at $150,000, go up to 80% LTV on some programs, and qualify on the property's rent with a 1.0x standard minimum DSCR and a 620 minimum credit score. Indianapolis investors buy older homes on the near east and south sides, renovate them with hard money, register them, and refinance once leased.
Indianapolis investors buy older homes on the near east and south sides, renovate them with hard money, register them, and refinance once leased. Others buy newer homes in the suburbs. A rate-and-term refinance pays off the short-term loan without taking cash out.
Rate-and-term means the new loan pays off the existing debt plus closing costs, with little or no cash back. You usually get a lower or fixed long-term payment, a longer term, and an end to the maturity date on a short-term note.
Investors buy in Fountain Square, Irvington, Bates-Hendricks, Garfield Park, the Near Eastside, Martindale-Brightwood, Butler-Tarkington and Broad Ripple, plus Lawrence, Beech Grove, Speedway, Greenwood, Avon, Plainfield, Fishers and Noblesville.
The city has many early 1900s doubles, bungalows and cottages, plus post-war ranch homes and newer suburban stock. Older doubles often need electrical, plumbing and roof work.
Indianapolis appraisals for doubles compare with other doubles nearby, which are common on the near east and south sides. Renovation quality makes a big difference to both value and rent. In the suburbs, newer homes have plenty of comps. The rent schedule will compare your leases with similar units, and doubles with separate utilities usually rent best. Expect the appraiser to check both units, so schedule access with your tenants in advance. Homes in Fishers, Noblesville and Carmel cost more, which can make the ratio tighter even with higher rents.
Most investors leaving short-term debt choose rate-and-term, because it allows higher leverage on some programs and fewer questions about seasoning. Cash-out makes sense when you have built equity and want to fund the next deal.
Timing matters. Some programs use the purchase price plus documented improvements until the property has been owned for a set period, and others use the new appraised value sooner. Ask which applies before you start.
| Item | Rate-and-term | Cash-out |
|---|---|---|
| Purpose | Pay off existing debt and closing costs | Pull equity out as cash |
| Max LTV | Up to 80% on some programs | Up to 75% |
| Cash to you | Little or none | Equity above the payoff |
| Seasoning | Varies by program | Varies by program; often longer |
| Best fit | Ending hard money or bridge debt | Funding the next purchase |
This example is illustrative and not a quote. An investor owns a renovated double in Irvington, appraised at $265,000, with a $190,000 balance on a short-term loan. Rent is $2,250 a month across two units. The new loan pays off the existing balance and rolls in about $5,000 of closing costs, for a loan of $195,000, or about 74% of value.
On 30-year amortization, estimated principal and interest is about $1,330 a month. Adding taxes of about $300 and insurance of about $150 brings the total to about $1,780, so the DSCR is about 1.26x against the 1.0x standard minimum. The 2% cap keeps the tax line predictable here, so both units leased at market rent produces a comfortable ratio.
| Item | Amount |
|---|---|
| Appraised value | $265,000 |
| Existing loan payoff | $190,000 |
| Closing costs rolled in | $5,000 |
| New loan amount | $195,000 (about 74% LTV) |
| Estimated principal and interest | $1,330 |
| Taxes, insurance and HOA | $450 |
| Total monthly payment | $1,780 |
| Monthly rent | $2,250 |
| DSCR | About 1.26x |
Indiana caps property taxes on residential rental property at 2% of gross assessed value. Marion County assessments are trended yearly. Use the current bill and the cap.
Indiana has no transfer tax or mortgage tax. Refinance costs are mostly title, recording, appraisal and lender fees.
Older doubles and homes with dated roofs or wiring can price higher. Some homes near Fall Creek, Pogue's Run and the White River are in flood zones.
Indianapolis requires rental property owners to register with the city's rental registry, and the city has added tenant protections in recent years. Have your registration current. Short-term rentals face city permit rules. Recent Indianapolis ordinances added tenant protections and made registry compliance more important, including limits on certain fees and retaliation. Make sure your lease and registry entry are current before you refinance. Suburbs such as Lawrence and Beech Grove handle rental inspections differently, so check the city that issues the tax bill.
Our investor loans are business-purpose loans on non-owner-occupied property. You will sign for the loan personally, and the credit and background review is part of the file.
If units are vacant, ask how the program treats them. Some use market rent from the appraisal; others want a signed lease before closing. Signed leases make the file cleaner.
Send us the property address, the payoff amount, the rent and the tax and insurance figures through the form below, or call (877) 298-1001. We will size the loan, show the estimated DSCR, and flag anything local that needs attention. For the statewide picture, see our Indiana rate-and-term refinance page.
If your hard money or bridge loan has an extension deadline, start at least 30 to 45 days ahead. That leaves time for the appraisal, title and any repair items.
Yes, the city requires rental registration. Underwriters may ask to see it.
Yes. Residential rental property, including doubles, is capped at 2% of gross assessed value.
Yes. We refinance 1-8 unit rentals across the Indianapolis metro.
Yes. That is one of the most common files we see. Have the payoff letter, the lease and your rental registry confirmation ready.
No. Our investor loans are business-purpose loans on non-owner-occupied property.
Yes. LLC borrowers are standard, and you sign for the loan personally.
Seasoning rules vary by program. Some allow a refinance soon after purchase if the property is leased.
Up to 80% LTV on some programs, with loans from $150,000 and no stated maximum. The rent must cover the payment at the program minimum, usually 1.0x.
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