26d • General discussion
💰 UNDERWRITING TIP: How to Estimate Your Cash-Out on a Refinance (Before Calling a Lender)
Want a quick way to know about how much cash you can pull out on a refi? Use this simple framework investors rely on:
Step 1: Estimate Value
NOI ÷ Exit Cap Rate
Example:
$150,000 NOI ÷ 7.5% = $2,000,000 value
Step 2: Apply Conservative LTV
Most refis land around 65%–75% LTV
$2,000,000 × 70% = $1,400,000 new loan
Step 3: Subtract Your Current Loan
$1,400,000 – $1,050,000 = $350,000
Step 4: Account for Refi Costs & Reserves
Closing costs, fees, escrows
≈ $300,000 estimated cash-out
Pro Tip:
If your NOI increase doesn’t exceed refi costs, you’re not ready yet.
Force appreciation first. Then refinance.
If you’d like to underwrite deals like a pro, join the ProSphere Skool Community and get access to our Underwriting Accelerator Masterclass! Designed to help you analyze deals confidently, accurately, and lender-ready.
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💰 UNDERWRITING TIP: How to Estimate Your Cash-Out on a Refinance (Before Calling a Lender)
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