Cash out refi on a sf that rents out rooms

[Sean Roland]

Hello everyone, I have a sf in Michigan that I like to rent out by room. What lenders will allow a cash out refinance on a property that’s being rented out that way?

[Robin Simon]

Quote from @Sean Roland:

Hello everyone, I have a sf in Michigan that I like to rent out by room. What lenders will allow a cash out refinance on a property that’s being rented out that way?

This is definitely still a "grey" area that is going to have a lot of nuances lender to lender. General rule of thumb though is the more "extraordinary" the property is vs. a vanilla LTR (one lease - basic 3 bedroom SFR), the harder it will be to finance. Differences such as alterations, abnormal bedroom counts for the neighborhood (i.e. 8 bedrooms in a neighborhood full of 3/2s) etc