What Is a Cash-Out Refinance Loan?

A Cash-Out Refinance Loan is a type of real estate loan that allows you to pull equity from a property you already own by refinancing it for more than the current loan balance — giving you cash at closing to reinvest, pay off debts, or fund new projects.

This is one of the most powerful tools for scaling a real estate portfolio using existing assets.

Instead of selling a property to access your profits, a cash-out refinance lets you:

  1. Keep the property

  2. Replace your current loan with a larger one

  3. Receive the difference in cash

How It Works

  • Current Property Value - $300,000

  • Current Mortgage Balance - $150,000

  • New Loan (70% LTV) - $210,000

  • Cash Out - $60,000 (after payoff)

Ideal For

  • Investors needing fast capital to fund new deals

  • Owners with significant equity in a rental or flip

  • Real estate pros who want to leverage appreciation

  • Builders needing working capital

Benefits

  • No need to sell a performing asset

  • Fast closings with limited documentation

  • Can be used to consolidate debt or fuel multiple deals

  • Works great alongside DSCR or fix & flip strategies

Common Exit Strategies

  • Sell the property later at peak value

  • Refinance again into a long-term DSCR or conventional loan

  • Use rental income to pay down the new loan

  • All the best

You now have a new loan of $210,000, pay off the $150,000 balance, and walk away with $60,000 cash (minus closing costs).

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type of loans

FIX & FLIP LOAN

Rental property funding based on cash flow, not personal income.

DSCR LOAN

Rental property funding based on cash flow, not personal income.

NEW CONSTRUCTION LOAN

Break ground with confidence.

COMMERCIAL LOAN

For a larger deals and portfolio expansion

LAND LOAN

A land loan finances undeveloped land for future use.

CASH-OUT REFINANCE

Access home equity and get cash in hand

R. Wright Consulting

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