Calculate how much equity you can pull from your commercial property. See your maximum cash-out amount, new loan terms, and the impact on monthly payments.
🏠 Property Equity Breakdown
💡 Smart Uses for Cash-Out Proceeds Acquire additional investment properties and grow your portfolio Fund value-add renovations to increase NOI and property value Consolidate higher-interest business debt at lower CRE rates Create operating reserves or fund business expansion capital Pay down other high-LTV loans to improve your overall leverage position
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Access your property's built-up equity without selling.
You replace your existing mortgage with a larger one and receive the difference in cash. If your property is worth $1.5M, you owe $600K, and you refinance at 75% LTV ($1.125M), the gross cash-out is $525K. Subtract closing costs — at an assumed 2% of the new loan ($22,500), about $502,500 reaches you, before any prepayment penalty on the old loan. Loan proceeds are borrowed money, not income, so receiving them is generally not taxable; confirm the treatment with your CPA.
Bank and DSCR lenders typically cap a cash-out refinance at 65–75% of the appraised value. For an owner-occupied building, an SBA 504 refinance can reach 90% of value, including eligible business expenses paid out in cash (SBA rule effective November 15, 2024). Bridge lenders lend 65–80%. The more equity you leave in, the better the rate and terms on the new loan.
A larger loan means higher monthly payments. The property’s NOI has to cover the new debt service at the lender’s minimum DSCR — often 1.20x–1.25x. If the cash-out proceeds fund income-producing improvements or acquisitions, the net effect on your portfolio can be positive.
Cash-out replaces your entire first mortgage. A commercial HELOC provides a revolving credit line. A second lien sits behind your first mortgage. Cash-out typically offers the lowest rates and simplest structure but requires refinancing the whole loan.
Every calculator we offer, in one place — run the next number your lender will ask about.
Common questions about cash-out refinancing for CRE.
Bank and DSCR lenders usually allow cash-out up to 65–75% LTV; an owner-occupied building can reach 90% through an SBA 504 refinance. If your property is worth $2M and you owe $500K, a 75% LTV loan of $1.5M minus the $500K payoff leaves up to $1M before closing costs. The exact amount depends on the appraisal, DSCR, and lender guidelines.
Loan proceeds are borrowed money, not income, so receiving them is generally not a taxable event. Whether the interest on the new loan is deductible depends on how you use the cash — the IRS traces the use of borrowed funds (Treas. Reg. §1.163-8T). Income you earn with the money (for example, rent from another property) is taxable as usual. Confirm the treatment with your CPA before closing.
Most lenders require 6–12 months of ownership before allowing a cash-out refinance. Some require the property to be seasoned for 2+ years to use the current appraised value (vs. purchase price). Bridge lenders may have shorter or no seasoning requirements.
Yes. Investment properties are eligible for cash-out refinancing through bank loans, DSCR loans, CMBS and portfolio lenders, typically at 65–75% LTV. Owner-occupied buildings can go higher through an SBA 504 refinance (up to 90%). DSCR loans are popular because they do not require personal income verification.
Yes. A larger loan means higher debt service, which lowers your DSCR. Lenders check that the property can still support the new payment at their minimum DSCR, often 1.20x–1.25x. If NOI is tight, you may not be able to pull out as much equity as the LTV allows.
We analyze your property's value, equity position, and NOI to determine the optimal cash-out amount. We then match you with multiple CRE lenders to get competing offers. Our advisory is free — we are compensated by the lender only when your loan closes.
Our advisors structure your cash-out refi for maximum proceeds at the best available terms — no guesswork, no upfront fees.
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