Investment Property Refinance Calculator

How this calculator works

A cash-out refinance on a rental is limited by the property's value and by whether the rent covers the new payment. This calculator checks both and shows the cash you would take out, the new payment and the effect on cash flow.

Maximum loan = the smaller of value × LTV and the loan the rent supports at the minimum DSCR.
Cash out = new loan − current balance − points and closing costs − any prepayment penalty.

Worked example

Example values are illustrative, not quotes or market data. These are the numbers the calculator above starts with.

Inputs

Current value: $300,000
Current rate: 5%
Years left: 24
Maximum LTV: 75%
Minimum DSCR: 1
New rate: 7.5%
New loan length: 30 years
Points: 1%
Closing costs: $5,000
Monthly rent: $2,400
Vacancy: 5%
Property taxes per year: $6,000
Insurance per year: $2,000
Management: 8%
Maintenance (% of rent): 5%
Capital reserves (% of rent): 5%

Results

New loan: $225,000
Cash out: $77,750
New payment: $1,573
Cash flow after: -$382

Common questions

How much can I cash out on a rental?

Investment cash-out loans are commonly limited to 70% to 75% of value, and DSCR loans also need the rent to cover the payment. Lenders vary.

Is cash-out money taxable?

Loan proceeds are generally not income, but ask a tax professional about your situation.

What is the cost of the cash out?

The results show how much yearly cash flow you give up for the cash taken out.

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Estimate only. Actual loan terms, eligibility, insurance, taxes, and settlement charges require verification. These are planning estimates, not a lender Loan Estimate, Closing Disclosure, appraisal, or approval. Michael O'Neal is a real estate broker, not a lender, appraiser, attorney or tax adviser.