"Unlimited cash-out" is one of those phrases that sounds like marketing until you've actually been the sponsor on the wrong side of a fixed cap. Then it becomes the difference between redeploying $500,000 of equity and redeploying $2.5 million.
This post explains what the phrase actually means in our underwriting, where the limits really are, and which sponsors benefit most.
What Most Lenders Do
Walk into any conventional or agency cash-out refinance and you'll find one of three caps:
- A fixed dollar limit on cash-back at closing (e.g., "$250,000 maximum cash to borrower" or "$500,000 maximum"). This is common at banks and on many DSCR programs.
- A "rate-and-term-plus-X" rule — you can pay off existing debt and take a small additional amount, but no more.
- Seasoning of ownership combined with cost-basis caps — for the first 6 to 12 months you're capped at original cost basis, regardless of new appraised value.
All three are reasonable from a credit standpoint. They also leave equity stranded for sponsors who actually executed a value-add and have a stabilized property worth 30–60% more than their basis.
What Riverside Park Capital Does
Cash-out on our program is constrained only by maximum LTV and supportable DSCR. There is no separate dollar cap. There is no "rate-and-term-plus" formula. After 6 months of seasoning from acquisition or completion of value-add, the cash-back at closing equals new appraised value × max LTV − existing debt payoff − closing costs. That's the entire formula.
Maximum LTVs by asset class:
| Asset Class | Max LTV | Cash-Out Cap | Min DSCR |
|---|---|---|---|
| Multifamily | 75% | Unlimited | 1.20 |
| Mixed-Use / Retail | 70–75% | Unlimited | 1.20–1.25 |
| Industrial / Warehouse | 70–75% | Unlimited | 1.20 |
| Hotels & Motels | 75% | Unlimited | 1.25 |
| Mobile Home Parks | 75% | Unlimited | 1.20 |
| DSCR 1–4 Unit Investor Rentals | 75–80% | Unlimited | 1.10 |
Who This Matters Most For
- Value-add sponsors: Bought, executed, stabilized — and now want to recapitalize at the new value without selling.
- Long-term holders: Equity build-up over 5+ years that's currently trapped in the asset.
- Operators rolling into 1031 replacements: Cash-out timing is critical when the replacement clock is running.
- Hotel and MHC operators, in particular, where the small-balance market historically caps cash-out hard.
The Catch (Honest Version)
"Unlimited" refers to the dollar amount, not the underwriting standard. The property still has to:
- Appraise at a value that supports the leverage
- Cash-flow to the minimum DSCR for its asset class
- Sit in a Top 200 MSA
- Meet the asset-class-specific debt yield, occupancy, and condition thresholds
If those four boxes check, the cash comes back. If they don't, no program — capped or uncapped — is going to fund the loan.
Seasoning
For full cash-out at appraised value, we require 6 months of seasoning from acquisition or completion of value-add. Cost-basis cash-out is available sooner. Most maturing-debt refinances have plenty of seasoning by definition.
What to Send Us
- Property address and asset class
- Acquisition date and basis
- Trailing-12 NOI or, for residential investor, current rent roll and DSCR
- Existing debt balance and rate
- Use of proceeds
That's enough for a real, ranged quote within one business day.
About the author
Capital Markets Desk
Research & Analysis
The Capital Markets Desk at Riverside Park Capital provides expert perspectives on commercial and residential real estate lending, market trends, and investment strategies.