Loan Scenario:

A newer investor turned to American Heritage Lending to unlock equity from a single-family rental in Ridgecrest through a cash-out refinance. Although the borrower had held the subject property for only nine months, a four-year track record in their primary residence and a healthy 1.066 debt-service coverage ratio gave our team the confidence to structure the financing. Against an appraised value of $261,000, the $180,000 loan came in at a conservative 69% loan-to-value, leaving meaningful equity in place while still returning capital to the borrower.

To maximize monthly cash flow, we structured the file as a 40-year interest-only DSCR loan delivered as a true zero-point loan, keeping upfront costs to a minimum. Ridgecrest, tucked into California’s high desert in Kern County, is home to Naval Air Weapons Station China Lake, a major employer whose steady presence supports consistent rental demand and makes the local housing market a dependable one for buy-and-hold investors.

This closing shows how a motivated California investor can convert home equity into working capital without giving up long-term ownership, and how flexible financing can reward even those early in their investing journey.

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