A $1.9 Million DSCR Refinance on a Duplex with an ADU
A $1.9 million cash-out refinance in El Segundo, California, demonstrates how the right financing program can help real estate investors leverage their properties. Using a Debt Service Coverage Ratio (DSCR) loan, the borrower qualified based on rental income rather than traditional personal income documentation.
The Challenge
The borrower wanted to refinance an investment property consisting of a duplex with an accessory dwelling unit (ADU). The existing private mortgage needed to be paid off, and the borrower wanted to access additional cash for reserves and property improvements.
Traditional income documentation wasn't the focus of this transaction.
The Solution
We structured the refinance through the Spectrum DSCR program, evaluating the property's rental income to qualify the borrower.
The program allowed the transaction to proceed without personal tax returns, W-2s, or bank statements, subject to the program's applicable requirements.
The Result
The $1.9 million cash-out refinance paid off the existing private mortgage and provided cash for reserves and property improvements. The transaction demonstrates how DSCR financing can offer real estate investors an alternative to conventional income documentation.