A cash-out refinance can release eligible investment-property equity. It also replaces the loan you have. Both halves belong on the same page of paper.
Business-purpose investment financing. Stonehaven Lending is a mortgage brokerage. Subject to lender underwriting, documentation, valuation and program availability. Preliminary review is not approval or a commitment. NMLS #1752355.
A rental cash-out refinance replaces the current loan with a larger one and returns the difference, less costs, as proceeds. Eligibility is assessed on the property's rent against the new qualifying payment (PITIA), plus credit, seasoning, leverage and reserves. The relevant limitation: the refinanced rental must still work as an investment at the new payment, and replacing existing debt changes its economics. This is not the HELOC situation; the existing loan does not stay in place.
In August 2026, Stonehaven reported arranging approximately $225,000 against a Florida single-family rental valued at about $300,000, at 75% LTV, to pay off a maturing hard-money loan.
The timing and terms belonged to that transaction and its prepared file. They are not current pricing or a standard closing promise.
An owner holds a rental worth about $400,000 with a $210,000 balance and wants capital for another purchase. The gross gap is $190,000; the usable number is smaller after program leverage limits, closing costs and any reserve requirements, and the new payment is larger for as long as the loan runs. Illustrative example, not a customer.
The decision is whether the next investment earns more than the refinance costs, on both properties, at the same time.
Compare three paths honestly: keep the current loan and fund the next purchase another way, take the cash-out and accept the new payment, or use an available second-lien structure if one exists for the scenario. Each has a different cost and a different effect on the existing rental.
If the current loan carries terms worth keeping and the new blended cost is high, keeping it can be the right answer. The review should be willing to say so.
The comparison that decides this is a two-column exercise. Illustrative structure; your review fills in real numbers:
| What to compare | Current loan | Proposed cash-out |
| Monthly payment (PITIA) | Known today | Larger; sized at the new balance |
| Remaining term | Whatever remains | Resets per the new note |
| Net proceeds | None | New loan minus payoff, closing costs and any required reserves |
| Rental's monthly margin | Current rent minus current payment | Same rent minus the larger payment |
| Prepayment exposure | Per existing note | New prepayment terms apply |
| Effect on next purchase | Capital found elsewhere | Capital in hand, at the cost above |
Rental income treatment is one input. These commonly shape eligibility and terms as well:
Net proceeds are the loan amount minus payoff, costs and any required reserves. A review itemizes the components rather than quoting the gross equity gap, because the gross gap is never the check.
It changes it: same rent, larger payment, new term, new prepayment terms. Whether that trade is worth it depends on what the released capital earns. That comparison is the review.
Property numbers, rough credit picture, cash position and timing. Estimates are fine to start; no SSN is collected at this stage.
A licensed specialist reviews the scenario and compares the financing structures that actually fit it, including when a different product or waiting is the better answer.
If you proceed, a lender underwrites the full file. A preliminary review is analysis, not approval, and no closing timeline is promised here.
Rental cash-out refinance. Start with your name and email. Deal details are optional; we will review your inquiry and explain the next step.
Our team will review it and respond by your preferred method. This is not an approval or a rate quote.
Ready with the numbers? Use the detailed review · Book a conversation
Initial inquiry only. Financing is subject to underwriting, documentation and program availability.
Share the rough numbers and your mobile number. A specialist will follow up by text to review the financing paths that fit your scenario.
Business-purpose investment financing. Stonehaven Lending is a mortgage brokerage. Subject to lender underwriting, documentation, valuation and program availability. Preliminary review is not approval or a commitment. NMLS #1752355.
Seasoning rules vary by program, and prior cash-out timing can matter too. Your ownership dates get checked against actual program rules during review.
Programs set leverage limits, often tighter for cash-out than for purchases, and the property's appraisal controls the base. The usable number comes from the review, not a rule of thumb.
Funding another investment is a common use; programs may ask about intended use as part of review. What no program does is guarantee proceeds in advance.
Sometimes, when the current first-lien terms are worth keeping and a suitable second-lien structure exists for investment property. Availability is scenario-specific; the review compares whichever paths actually exist for your file.
No. A cash-out refinance pays off and replaces the existing loan. Keeping the current loan is only possible under the keep-or-second-lien paths, where available.
