Loan Scenario:

American Heritage Lending funded a $100,000 DSCR cash-out refinance on a three-unit property in Cleveland, Ohio, freeing up equity for a newer investor while keeping the rental in place. The property appraised at $155,000, so the loan closed at 64.52% loan-to-value on a 30-Year term, a conservative leverage point that leaves a healthy equity cushion behind. Notably, this was structured as a True Zero Point Loan, so the borrower pulled cash out without paying origination points. DSCR is built for this: qualification came from the property’s rental income rather than the borrower’s personal earnings, which keeps a cash-out refinance clean and document-light for a newer investor. The combined rents cover the note at a DSCR of 2.414, exceptionally strong coverage that easily carries the debt on a three-unit hold. That kind of margin also gives a newer investor confidence to redeploy the freed-up equity into the next acquisition.

Cleveland’s economy is anchored by the medical sector, with the Cleveland Clinic, University Hospitals, and MetroHealth among the region’s largest employers, joined by KeyCorp, Progressive, and Sherwin-Williams, which is building a new downtown headquarters. That deep eds-and-meds base supports a steady renter population across the city’s dense, walkable neighborhoods. Furthermore, Cleveland remains one of the more affordable major metros in the country, and its low entry prices relative to rents are exactly what keep small multifamily buildings attractive to cash-flow investors. Three-unit properties in particular draw tenants who want a full home without single-family pricing, which keeps occupancy dependable through the year. Because of this, well-located multifamily buildings tend to hold their value and their rent rolls even in softer stretches.

Overall, this deal shows how American Heritage Lending backs investors with practical DSCR financing. Measured leverage, income-qualified underwriting, and a zero-point cash-out structure give the borrower liquidity to redeploy while holding a strongly performing rental in a market anchored by health care and value pricing.

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