Investor Guide
Cash-Out Refinance in Florida: Unlock Equity for Your Next Deal
A cash-out refinance is the most efficient way Florida real estate investors recycle equity into the next acquisition. Whether your existing property is free-and-clear or carries a small mortgage, you can pull up to 75% of its appraised value back as tax-free working capital. Here's how to choose between a fast hard money cash-out and a long-term DSCR refinance in Northeast Florida.
How Investment-Property Cash-Out Works
The lender appraises the property, calculates the new loan at the program's max LTV, pays off any existing lien, and wires the remainder to you at closing. Because the loan is secured by an investment property and used for business purposes, it qualifies as business-purpose financing — no W-2s, no tax returns, no DTI calculation.
Two Paths: Hard Money vs. DSCR
| Feature | Hard Money Cash-Out | DSCR Cash-Out |
|---|---|---|
| Term | 6–24 months IO | 30-year fixed / ARM |
| Max LTV | 65–70% | 70–75% |
| Close speed | 7–14 days | 21–30 days |
| Seasoning | Minimal | 3–6 months typical |
| Rate | 9.99%–12.5% | ~1–2% above conventional |
| Best for | Speed, bridge to next deal | Permanent hold, scaling rentals |
Example: Pulling Equity From a Paid-Off Rental
- Jacksonville rental, free-and-clear: appraised at $300,000
- DSCR cash-out at 75% LTV: $225,000 new loan
- Closing costs (Florida doc stamps, intangible tax, title, lender): ~$7,500
- Net cash to investor: ~$217,500 — enough to put down on the next 1–2 rentals
When to Use Each
Use a hard money cash-out when speed wins the deal — you've found the next acquisition and you need liquidity in two weeks, or the property isn't yet leased. Use a DSCR cash-out when the property is stabilized, the rent covers the new payment, and you want to lock in 30-year financing and stop paying short-term interest.
Florida-Specific Closing Costs
Florida charges doc stamps on the note ($0.35 per $100 of loan amount) and intangible tax (0.2% of the new mortgage) — plus title insurance and recording fees. On a $225,000 refinance that's roughly $1,237 in state taxes alone. Build them into your net-proceeds calculation up front.
Cash-Out Refinance FAQs
What is a cash-out refinance on an investment property?+
A cash-out refinance replaces an existing loan (or pays off a free-and-clear property) with a larger loan, putting the difference in your pocket as tax-free liquidity. Investors use the proceeds to fund the next acquisition, rehab, or down payment.
How much equity can I pull out in Florida?+
Most Florida programs cap cash-out refinances at 70–75% LTV on a hard money / bridge loan, or 70–75% on a DSCR refinance. On a free-and-clear property that means up to 75% of appraised value can come back as cash.
Hard money cash-out vs. DSCR cash-out — which should I use?+
Use hard money when you need to close in 7–14 days or the property isn't yet rented/seasoned. Use DSCR for 30-year fixed financing once the property is leased and the rent covers the new payment.
Do I need tax returns to pull cash out?+
No. Both hard money cash-out and DSCR cash-out are business-purpose loans underwritten on the asset and your credit — not personal income docs.
How fast can I close a cash-out refinance in Jacksonville?+
A hard money cash-out closes in 7–14 days. A DSCR cash-out typically closes in 21–30 days because of the appraisal and title-seasoning requirements.
Are there seasoning requirements?+
Hard money has minimal seasoning. DSCR cash-out usually requires 3–6 months of ownership before lending on the new appraised value (vs. purchase price). Plan the refi timing around your hold strategy.
Get matched with a Florida cash-out lender
Free referral service — tell us about your property and target timeline and we'll connect you with a vetted Florida hard money or DSCR lender.
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