Loan Scenario:

When an experienced investor came to American Heritage Lending looking to unlock equity in a single-family rental he had held for more than a year, the numbers told a clean, compelling story. The borrower had originally acquired the Memphis property through a 1031 exchange, seasoned it well past the twelve-month mark, and watched it appraise at $246,000 against a modest $140,000 loan request. That conservative 57% loan-to-value, paired with a strong 1.499 DSCR, made this DSCR loan a straightforward cash-out refinance that let the investor pull capital back out without disturbing the performance of the asset.

Memphis continues to be one of the most durable cash-flow markets in the country for buy-and-hold investors. Anchored by its role as a national logistics and distribution hub and supported by steady rental demand across its established single-family neighborhoods, the city offers the kind of price-to-rent ratios that make DSCR-qualified rentals pencil out comfortably. For an investor building a portfolio in Tennessee, that combination of affordability and consistent occupancy is exactly what keeps coverage ratios healthy.

Structured as a true zero-point, 30-year loan, this refinance gave the borrower long-term stability and freed-up equity to redeploy into his next acquisition. If you are ready to put the equity in your rental portfolio to work, American Heritage Lending can help you explore your financing options.

Similar Recently Funded Case Studies: DSCR Loan in Nashville, TN  •  DSCR Loan in Oak Ridge, TN  •  DSCR Loan in Memphis, TN

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