Cash-Out BasicsQuestion 4
Can I Do a Cash-Out Refinance on an Investment Property in Houston?
Yes — cash-out refinancing is available for Houston investment properties through conventional, DSCR, and portfolio lenders, typically at 70%–75% maximum LTV.
Cash-out refinancing on investment properties is absolutely available in Houston and is one of the most common strategies landlords use to grow their portfolios.
- Conventional lenders: Fannie Mae allows cash-out up to 70% LTV on 1-unit investment properties, 70% on 2–4 units.
- DSCR lenders: Most offer 70%–75% LTV on cash-outs. Qualification is based on the property's rent, not your personal income.
- Portfolio lenders: Local Houston banks may offer cash-out with flexible terms based on your overall relationship and portfolio.
- Key difference from primary residence: Investment property cash-out has lower max LTV (70–75% vs 80%) and higher rates (0.5%–1% premium).
Bottom Line
Houston's strong property values and rental market make cash-out refinancing on investment properties both available and practical. It's a core strategy for scaling from 1 property to a multi-unit portfolio.