Investment Property Cash-Out Refinance

Agency cash-out

Conventional agency cash-out has transaction and property requirements distinct from primary-residence refinancing.

Recently acquired property

Acquisition timing and the source of the original purchase funds can affect available refinance structures.

Private options

DSCR and other private-investor cash-out products may have different seasoning, valuation and leverage matrices.

Purpose of proceeds

Business-purpose classification and consumer-purpose rules should be determined from the actual transaction, not assumed from investment occupancy alone.

Seasoning is not one universal rule

Agency cash-out, delayed financing and private DSCR cash-out use different acquisition/title/value requirements. Verify the exact product before promising how soon equity can be accessed.

Documents I would gather before calculating rental income

Current mortgage statements/PITIA for every retained property; Schedule E and applicable tax returns; leases; purchase closing statements and acquisition dates; appraisals or rent schedules when applicable; proof of current housing payments; insurance/HOA information; entity documents if an LLC is involved; and evidence of reserves. The correct calculation depends on what the property is and when/how it was acquired.

Common investor-loan mistakes

Calling 75% of rent 'income' without subtracting PITIA; using a lease when current agency policy requires another rent source; adding positive rental income when it is only allowed to offset housing expense; confusing cap rate with DSCR; applying a private investor's seasoning rule to Fannie/Freddie; and assuming an LLC-owned mortgage is counted the same as a personally obligated mortgage.

Primary sources to verify

• Fannie Mae — General Rental Income
• Fannie Mae — Investment Property Purchased Within 45 Days
• Fannie Mae — Multiple Financed Properties
• Freddie Mac — Investment Property Mortgages

Last reviewed September 15, 2026.