Case Study: DSCR Cash-Out Refinance in Plano, TX
A DSCR cash-out refinance on a Legacy West rental in Plano, TX. $770K pulled at 63.17% LTV. See how,
nmin readReleased on:August 27, 2026Last updated on:August 27, 2026
About the Deal
A borrower refinanced a single-family residence in Legacy West, Plano, Texas, one of the strongest residential and employment corridors in the Dallas metro.
The 2021-built property appraised at $1,219,000 and was leased to a tenant under a two-year lease signed in October 2025. The borrower was not looking to sell. The goal was to use a DSCR cash-out refinance to access equity while keeping the property, tenant, and rental income in place.
Ridge Street Capital structured the refinance as a 30-year fixed-rate DSCR loan and financed it through its Texas DSCR loan program. The loan closed in 24 days.
What Made It Special
The signed lease was far above the automated rent estimate. Zillow’s long-term rent estimate for the property was $5,979 per month. The signed lease on file was 79% above the automated estimate. That difference mattered. Ridge Street Capital underwrote the file using the signed lease.
The refinance kept leverage conservative. The $770,000 loan represented 63.17% of the $1,219,000 appraised value. That left more than $449,000 in equity in the property after the refinance.
At that leverage point, the borrower accessed liquidity while maintaining a meaningful equity cushion. The lower LTV also supported stronger pricing than a higher-leverage cash-out refinance.
The borrower accessed equity without selling the asset. Selling a $1.2 million rental property in Legacy West could create transaction costs, potential tax exposure, and the loss of a tenant.
The cash-out refinance allowed the borrower to unlock equity while keeping the lease, tenant relationship, and long-term ownership position intact.
The Result
Ridge Street Capital completed a DSCR cash-out refinance on a fully leased Legacy West property, giving the borrower access to equity without selling the asset or disrupting a high-performing lease.
- Loan amount: $770,000
- Loan type: 30-year fixed-rate DSCR loan
- Rate: 6.642%
- LTV: 63.17% on a $1,219,000 appraised value
- Actual monthly rent: $10,750
- DSCR: Approximately 1.37
- Closed: 24 days
More About Ridge Street Capital
Ridge Street Capital provides fix-and-flip loans, DSCR rental loans, and ground-up construction financing to real estate investors across 35 states. Every deal is reviewed by a team focused exclusively on investment properties, so the underwriting questions are tied to what makes the project work.
Zach Cohen is the Managing Partner of Ridge Street Capital, a direct private lender providing hard money and DSCR loans to real estate investors across 35 states. Under his leadership, the firm has funded nearly $100 million in investment property loans. He regularly works with real estate investors on rental property acquisitions, refinances, and fix-and-flip projects across the country.
Fix and Flip Loans
Funding For Purchase + Rehab
- $50,000 up to $3,000,000
- Interest Rate 10.5%-11.5%
- Origination Fee From 1.5%
- Up to 90% of Purchase and 100% of Rehab
DSCR Loans For Long Term Rentals
Perfect for first-time investors or experienced investors scaling their rental portfolio.
- Up to $2,000,000
- Interest Rates from 6.0%
- Origination Fee From 0%
- Up to 80% of LTV
DSCR Loans For Short Term Rentals
Designed for investors pursuing higher rents with a short term rental strategy.
- Up to $2,000,000
- Interest Rates from 6.25%
- Origination Fee From 0%
- Up to 80% LTV
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