Investment Prop Cash Out2017-08-29T04:10:36+00:00

Investment Property Cash Out Refinancecash out refinance concept image

One of the most frequent questions we get from our customers who invest in Texas real estate is “Can I get a cash out loan for my investment property in Texas?

While many lenders do not offer cash out loans for investment property, Texas-Cash-Out.com from Hurst Lending & Insurance offers a number of Texas cash out loan options for real estate investors who are interested in taking cash out of their rental homes in Texas.

You can get an investor cash out loan to help you:

  • purchase more Texas rental property,
  • improve your existing property,
  • conserve your capital,
  • consolidate debt, or
  • fund other dreams.

Unlike many lenders, we offer several conventional and portfolio cash out options to Texas real estate investors:

  1. Take “Cash Out” for Rental Property that Has Increased in Value (Lowest Rates):

    You can use conventional financing (lowest rates available) to take out cash from your property after you have owned your property for at least 6 months and provided that you leave 25% equity in the property after your cash out refinance.

  2. Take “Cash Out” Based on Your Improvements to the Property (Lowest Rates):

    You can also take cash out from your investment property using conventional financing based on the after repair value based on any improvements you made to your property.  You simply need to refinance 6 months after the purchase date to take advantage of this conventional loan program with very low rates currently in the 4’s.

    • Example: Using Cash to Purchase and Repair Property – If you purchase a fixer upper for $100k with cash and make $20k worth of improvements to the property and based on these improvements the property is now worth $200k, you can take out cash based on the $160k after repair value.  This would allow you to take out 75% of the appraisal from after your repairs.  In this example, you can take out $150k.
    • Example: Using Financing (traditional or hard money) to Purchase and Repair Property – If you take out a loan for $120k to purchase and repair a fixer upper ($100k purchase price with $20k worth of improvements) and based on these improvements the property is now worth $200k, you can take out cash based on the $200k after repair value.  This would allow you to take out 75% of the appraisal from after your repairs.  In this example, you can take out $30k ($160 times .75 minus $120k loan = $30k Cash out).
  3. Take out More Cash from Your Investment Property (Moderate Rates):

    If you want or need to take out even more cash from your property, we also offer a program where you can maximize your cash out.  With this program you only need to leave in 20% equity in your property vs. having to leave in 25% or even 30%.  For example, if you bought a fixer upper for $100k and make $20k worth of improvements to the property and based on these improvements the property is now worth $200k, you can now take out cash based on the $200k after repair value.  This would allow you to take out 80% of the appraisal from after your repairs.  In this example, you could take out $160k (this is $10k higher than option #2 mentioned above).

To get a quote for a cash out investor loan, please click the button below or call us toll free at 877-692-0563. We would love a chance to see what scenario might work the best for you.

Texas Cash Out Loans – From Your Texas Lender!

Many large lenders don’t offer cash out refi’s in Texas. Texas-Cash-Out.com and our parent Hurst Lending are Texas lenders. We specialize in Texas cash out refinance loans and we understand the relevant Texas laws. Don’t let an out of state lender tell you what you can or can’t do. Trust a local specialist!
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Investment Property Cash Out Loan Application

Investment Property Cash Out Refinance FAQ’s

  1. How much equity do I need to get a Cash Out Loan for my Investment Property?

    A borrower can take equity out of an investment property using conventional financing (lowest rates) as long as they leave 25% equity in their home when they obtain a Cash Out Loan.  By way of example, if you have 50% equity in your home you can borrow 25% of the equity but must leave 25% equity in your home.  This is a unique law in Texas and is intended to protect home owners from taking out too much equity from their home.

  2. Taking out 75% of my equity is good but I need to take out more. Can I take out more than 25% of the equity in my rental property?

    Yes,  we offer an investor loan where you can take out 80% of the equity in your home but this program has a slightly higher rates (currently starting in the 5’s and 6’s).

  3. Do the Texas Constitution Cash Out Home Equity Rules apply to Investment Property?

    No, the Texas Constitution only regulates cash out home equity loans on your primary residence. These rules do not apply to 2nd homes or investment property.

  4. How often can I take cash out of my investment property?

    You can obtain a Cash Out Home Equity Loan for your investment property at any time.  The Texas Constitution Home Equity laws do not place any restrictions on loans on investment property so the rule that says that you can only get a Texas Cash Out Home Equity Loan one time per year does not apply.