Your rentals have gained value and the debt has come down. A portfolio cash-out refinance turns that equity into one check without selling a single house.
In short: A portfolio cash-out refinance replaces the loans on 5 or more rentals with one blanket loan sized up to 75% of the combined value, and pays you the difference after existing debt and costs. The loan amount is limited by both LTV and portfolio DSCR, so rents must cover the new payment. Proceeds are commonly used to buy more property, fund rehabs or pay off higher-cost debt.
The first limit is leverage. Our blanket programs go up to 75% aggregate LTV, measured against the combined appraised value of every property in the pool.
The second limit is cash flow. The new payment, including taxes, insurance and dues, must be covered by rents at roughly 1.0x DSCR or better. Whichever limit is lower sets the loan amount.
Your credit, the property types and your experience can also move leverage up or down within that range. Our DSCR programs start at a 620 minimum score, and stronger profiles generally see better pricing.
Illustrative example only. An investor owns 9 rentals worth $2,400,000 with $900,000 of existing mortgages.
Rents total $21,600 per month. Taxes, insurance and dues run about $4,200 per month.
| Line item | Example amount |
|---|---|
| Combined value | $2,400,000 |
| Max loan at 75% LTV | $1,800,000 |
| Existing debt paid off | -$900,000 |
| Example closing costs | -$45,000 |
| Estimated cash to investor | $855,000 |
| P&I at example 7.5%, 30-year | $12,586 / month |
| Total PITIA | $16,786 / month |
| Portfolio DSCR | About 1.29x |
Now assume the same 9 rentals bring in only $16,000 per month. To hold 1.0x, total PITIA cannot exceed $16,000. After $4,200 of taxes, insurance and dues, about $11,800 is left for principal and interest.
At the same example rate, $11,800 a month supports a loan of roughly $1,690,000. Cash to the investor drops by about $110,000 compared with the first scenario. Raising rents, appealing taxes or shopping insurance before you apply can directly increase your proceeds.
Lenders generally want you to have owned each property for a period before they lend on current appraised value rather than purchase price. Seasoning requirements vary, commonly 3–12 months. Recently purchased or rehabbed houses may be valued at cost until they season.
Each property gets its own valuation. One low appraisal reduces the pool total but does not kill the deal, since strong values elsewhere can carry it.
Whatever the purpose, keep a cushion. Lenders often want reserves after closing, and holding some proceeds back protects the portfolio if a tenant leaves or a roof fails.
Expect lender fees, valuations on each property, title insurance and recording in every county, plus prepaid taxes and insurance. On a portfolio, those costs are spread over one closing instead of one per house, which is a key reason investors refinance as a group.
Also check prepayment terms on the loans being paid off. A penalty on one existing loan can change whether it belongs in this refinance or should wait for a later round.
Send a list of your properties with estimated values, rents and current loan balances. Our financing team will run both the LTV and DSCR tests and typically bring back 2–3 options, often within 48 hours. That shows you the realistic cash number before you order a single appraisal.
Yes. A blanket portfolio loan can refinance 5 or more rentals in one closing and pay out equity across the whole pool. Larger portfolios may close as several loans with one lender.
Up to 75% of the combined value minus existing debt and costs, as long as rents cover the new payment at about 1.0x DSCR. The lower of the two limits sets your loan amount.
Loan proceeds are generally not treated as income because they must be repaid. Tax situations vary, so confirm with your CPA before you close.
Usually. Seasoning requirements vary by program, commonly 3 to 12 months, before current appraised value is used. Newer properties may be valued at purchase price plus documented improvements.
Yes. Paid-off properties add value and no payoff, which often increases the cash available. They are a common anchor in portfolio refinances.
One low value lowers the combined total but does not end the deal. The loan may be resized, or that property can be removed and the rest of the pool closed as planned.
2-3 competing quotes from 30+ capital sources. No credit pull. No commitment.
By clicking, you provide express written consent to be contacted by LendingStreet (NMLS #1734316) via SMS, phone, or email, possibly using automated technology, regarding your loan inquiry. Reply STOP to opt out. Consent is not required to obtain services. See our Privacy Policy and Terms.