Refinance your rental property to turn its equity into your next down payment.
Refinance a rental or investment property — or pull cash out of one you already own — without tax returns. A rental property refinance from Abo Capital qualifies on the property’s rent, not your personal income, so you can tap your equity and redeploy it into the next deal.
Rental property refinance terms at a glance
80%
maximum cash-out LTV
$3M+
maximum loan amount
Unlimited
cash in hand at lower LTV
No-ratio
qualify without income docs
Low-600s
minimum credit score
STR OK
short-term rentals eligible
All figures shown are maximums, with exceptions considered on a case-by-case basis. Final terms are quoted per deal and depend on the property, its cash flow, and your profile.
How a rental property refinance works
The loan is underwritten on the property’s rental income rather than your tax returns — the same way a DSCR loan works. You can do a rate-and-term refinance to improve your existing loan, or a cash-out refinance to convert built-up equity into liquid cash. Because these are business-purpose loans, the cash you pull out can go straight toward your next investment.
Big cash-out
At lower leverage there’s often little to no cap on the cash you can take in hand — ideal for funding the next purchase.
Tap your equity without touching your income
Want to pull equity out of a rental but keep your existing low-rate first mortgage in place? A home equity option is available on investment property too — a second lien that sits behind your current loan, up to a combined loan-to-value around 75%. Whether it’s a full cash-out refinance or a second-lien home equity loan on a rental property, the qualification is the same: the property’s income, not yours.
What if the rent doesn’t cover the payment?
This is the most common question we get on a California rental, and the honest answer is that it depends on how far the rent falls short. Coverage isn’t a pass/fail test. Programs price it in bands, and knowing which band a property lands in tells you what the deal actually looks like.
| Rent vs. payment | What’s available | Maximum leverage |
|---|---|---|
| Covers it (1.00+) | Standard programs, best pricing, lightest reserves | Up to 85% purchase / 80% cash-out |
| Nearly covers it (0.75–0.99) | Widely available, priced higher | Up to 75% |
| Falls well short (under 0.75) | No-ratio — fewer programs offer it at all | Up to 70% |
Most owners who assume they’re out of options land in that middle band, not the bottom one. It’s worth finding out which before you accept a smaller loan.
Before accepting lower leverage, we try to lift the ratio
Coverage is a ratio, and the payment is the bottom half of it. That makes the payment a lever — and moving it is usually worth more than shopping the rate.
- Interest-only. On most programs the ratio is measured against the interest-only payment rather than the fully amortized one. That alone moves plenty of properties back over 1.00 — and a file that clears 1.00 goes back onto the full grid, up to 80% instead of 70%.
- A longer term. Forty-year amortization lowers the payment for the same reason.
- A smaller loan. Taking somewhat less can move you out of the penalty band entirely. Because the pricing and reserve differences between bands are large, the smaller loan sometimes puts more in your pocket than the bigger one.
- The lease itself. Qualification uses the lesser of your lease in place or the appraiser’s market-rent opinion. A below-market lease drags the ratio down artificially — if one is close to expiring, timing matters.
Two other things move when coverage drops, and they surprise people more than the rate does: reserve requirements commonly go from around three months of payments to twelve, and credit matters more — meaningful leverage below 1.00 generally wants a score in the 700s. Cash-out proceeds can usually count toward the reserve requirement, which softens it considerably.
Or qualify on your income instead
If you’re self-employed with strong business deposits, a bank statement program skips the property test altogether and can reach up to 80% on a cash-out refinance of a rental — more leverage than the no-ratio route, at pricing close to a fully covering loan. A lot of owners whose rental misses coverage have the deposits to qualify this way and are simply never asked. See bank statement loans →
Which band a property actually lands in, and whether it can be restructured to clear coverage, is worth checking before you accept lower leverage. Read the full breakdown of no-ratio and partial-coverage financing →
All figures shown are program maximums, not quotes. Where a specific property lands depends on credit, property type, loan size and the transaction itself.
Works for short-term rentals, foreign nationals, and portfolios
Short-term rentals (Airbnb / VRBO) are a first-class property type, and projected or actual short-term-rental income can be used to qualify. Programs are also available for foreign national and ITIN borrowers, for 1–4 unit homes, condos, and townhomes, and for investors refinancing several properties at once.
Ready to pull cash out of your rental?
Qualify on the rent, not your tax returns — get a fast read on your equity.
Rental property refinance FAQs
Can I do a cash-out refinance on a rental property?
Yes. Cash-out refinances on rental and investment property are a core offering. You convert built-up equity into cash, qualifying on the property’s rental income rather than your personal income, and the proceeds can be reinvested.
Can I refinance a rental property without tax returns?
Yes. These are business-purpose loans underwritten on the property’s cash flow, so no tax returns, W-2s, or pay stubs are required. A no-ratio option is also available that doesn’t use rental income to qualify at all.
How much equity can I take out?
Cash-out is available up to roughly 80% of the property’s value. At lower leverage, there is often little to no cap on the actual cash in hand, so the amount you can take out scales with your equity.
Can I get a home equity loan on an investment property?
Yes. A second-lien home equity option is available on rentals, letting you tap equity while keeping your existing first mortgage in place, typically up to a combined loan-to-value around 75%.
Do short-term rentals like Airbnb qualify?
Yes. Short-term rentals are an eligible, first-class property type, and projected or actual short-term-rental income can be used to qualify for a refinance.
What if my rental doesn’t cash flow?
It depends how far it falls short. Between 0.75 and 0.99 coverage there’s a middle band most owners don’t know exists — still widely available, up to about 75% loan-to-value. Below 0.75 you’re into no-ratio territory, which fewer programs offer, generally to 70%. Before accepting either, it’s worth restructuring to lift the ratio: interest-only, a longer amortization or a slightly smaller loan can move a property back over 1.00 and back onto the full grid.
Does interest-only help me qualify?
Often, yes. On most programs the coverage ratio for an interest-only loan is calculated against the interest-only payment rather than the fully amortized one, which raises the ratio. A property that clears 1.00 that way is priced on the standard grid — a meaningfully better outcome than the same property submitted as no-ratio.