A question about cash out refi on first STR

[Ben Tharpe]

Hi, all. This is my first post. Thanks so much for any responses. Been lurking for a while but couldn't find any guidance for this question. I just bought my first STR in Louisiana about a month ago and actively renting it out. Due to being self employed, my local mortgage lender required me to put $90,000 (40%) down on a $221,000 house since it was an investment property. (I already have a primary residence that I own) Sometime in the next year or so, I would like to do a cash out refi to use some equity to put towards my second rental property. Will a dscr loan work as a cash out refi? Meaning that they wouldn't need my tax returns and allow me to refinance with them and pull all of the equity out minus the typical 20% down. Since conventional loans require me to put so much down on investment, I'm thinking everything should be dscr for now?

[Paul Garwol]

Ben,

You could cash out refi into a DSCR loan. Your tax returns or income will not be required. There are lenders that will cash out up to 80%. Also you can use the short term rental print out from Airbnb or Vrbo showing the rental income. If you have not owned it for 12 months it can be supplemented with a Airdna report or the appraiser giving a short term rental estimate on the 1007 report using short term comps in the area.