Recently Funded DSCR Loan In Memphis, Tennessee

Loan Scenario:

An experienced investor already holding three rental properties worked with American Heritage Lending to pull equity from a Memphis single-family home through a cash-out DSCR loan. With the property appraised at $125,000 and the loan set at $82,500, the conservative 66% loan-to-value left meaningful equity in place while freeing capital for the borrower’s next acquisition.

The rental’s economics made the case straightforward: a debt-service-coverage ratio of 1.54 shows income comfortably outpacing the payment, and AHL closed the refinance as a True Zero Point loan to minimize the cost of accessing that equity. For a portfolio investor, that combination of low leverage and strong coverage is an efficient way to recycle capital.

Memphis remains a favorite among cash-flow investors, where affordable price points, a large and stable renter base, and a logistics-driven economy anchored by major distribution employers support consistent rental demand. Those fundamentals let investors hit strong coverage ratios that are harder to find in pricier metros, keeping Tennessee squarely on the map for buy-and-hold strategies.

With equity unlocked and the rental still cash-flowing, this experienced borrower is positioned to redeploy into the next deal. Investors considering a cash-out refinance can review their financing options with AHL.

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