Can I Do a Cash-Out Refinance on a Paid-Off Houston Property?

Yes — a paid-off property is ideal for a cash-out refi. With no existing mortgage, you can borrow up to 70%–75% of the appraised value as cash.

• What to know: Understand the mechanics of cash-out refinancing so you can evaluate whether it fits your Houston investment strategy.
• Houston context: Houston's consistent appreciation and strong rental demand make cash-out refinancing a viable and popular strategy for local landlords.
• Action step: Calculate your potential cash proceeds using the formula: (Appraised Value x Max LTV) - Current Balance - Closing Costs = Cash Out.

Bottom Line

Cash-out refinancing is a foundational tool for Houston portfolio builders. Master the basics before committing to ensure it aligns with your investment goals.