Cash-out changes the DSCR math
A higher loan amount can increase debt service. If rent and expenses stay the same, DSCR may fall. Test the post-cash-out payment before deciding how much equity to access.
- Current balance
- Desired cash out
- Estimated property value
- Post-refinance payment
Use proceeds strategically
Investors often compare cash-out for reserves, repairs, or another acquisition. The right answer depends on risk tolerance, leverage, and portfolio goals.