Turn DSCR Rentals Goldmine with Cash Out Refinance
Real-World Examples and Considerations
Consider a scenario where an investor owns a rental property valued at $300,000 with a remaining mortgage of $150,000. By opting for a cash-out refinance, they could refinance up to 80% of the property's value, which is $240,000. After paying off the existing mortgage, they would have $90,000 available to reinvest4.
However, it's crucial to weigh the costs associated with refinancing, such as closing costs and potential changes in interest rates. These factors can affect the overall profitability of your investment strategy.