Cash-Out Refinance Case Study
Birmingham buy-and-hold to cash-out refi: $78K to $71K equity pull in 18 months
Priya Patel (New York) bought this Southside rental as her first out-of-state asset. She used the rental yield and cash-on-cash calculators to underwrite, held through proven cash flow and two rent increases, then ran the refinance numbers in the DSCR tool 60 days before the six-month seasoning window closed. Eighteen months later she pulled $71K back out while the property still cash-flows $142/mo.
Property snapshot
Southside 3/2 ranch
- Address
- 2418 18th Street South, Birmingham, AL 35205 (illustrative)
- Market
- Birmingham, AL — Southside submarket
- Property
- 3 bed / 2 bath single-family, 1,310 sq ft, built 1965
- Strategy
- Buy, light rehab, hold & cash-flow, cash-out refi after seasoning
Purchase
$78,000
Rehab budget
$11,200
Stabilized rent
$1,050/mo
Refi appraised value
$115,000
Refi proceeds
$71,200
Capital left in deal
$18,000
Conservative entry with minimal scope
Priya found the off-market lead via a Birmingham agent in the PocketSquad network. Purchase at $78K after inspection credit. Rehab was cosmetic only (paint, carpet to LVP, new appliances, bath refresh) budgeted at $11,200 via Rehab Estimator. Actual came in at $10,800.
She financed with 25% down conventional investment loan. The Rental Yield calculator projected $1,050 rent, 6% vacancy, and $98/mo net cash flow after all expenses — numbers that held up after the first tenant.
All-in at close
$89,200
Actual rehab
$10,800
Initial monthly CF
$98
18 months of real operating data before refi
Tenant stayed 14 months, then a 3% rent bump to $1,082 with new 12-month lease. Actual vacancy 4.2%, maintenance averaged $42/mo. Portfolio Dashboard rolled up the numbers automatically; Saved Scenarios now use the realized expense profile instead of estimates.
Priya checked the DSCR and Cash-on-Cash tools quarterly to watch equity build and confirm the deal was still on track for a future cash-out.
Rent at month 18
$1,082
Actual avg monthly CF
$112
Equity build (appreciation + paydown)
~$19K
Run the numbers 60 days before seasoning ends
At month 16 Priya opened the DSCR calculator with the current rent, projected ARV $115K (supported by recent Southside comps from heatmaps), and 70% LTV cash-out terms at 7.1%. The model showed $71,200 proceeds after paying off the original note and costs, leaving only $18K trapped while the asset continues to cash-flow $142/mo.
She uploaded 18 months of statements and the platform-generated operating summary to her lender. Appraisal came in at $114,500. Refi closed at month 18.2 with zero drama.
Final appraised value
$114,500
Refi LTV
70%
Net proceeds
$71,200
Post-refi monthly CF
$142
Outcome
Capital recycled, asset still working, data captured for next deal
Eighteen months and one seasoning period later, Priya has most of her capital back while the Birmingham property continues to throw off $142/mo. The entire history — purchase docs, rehab receipts, every rent deposit, the refi closing statement — lives in the single deal folder.
Her next acquisition in the same market starts with this deal’s actual numbers pre-loaded in Saved Scenarios.
Original cash in
$89,200
Capital recovered at refi
$71,200 (80%)
Remaining equity in asset
$18,000
Post-refi cash flow
$142/mo
Hold period to refi
18 months
Next step
Run the long-hold refi math
Use the DSCR and Cash-on-Cash calculators with your own purchase price, seasoning timeline, and projected ARV to see what a cash-out refi could return after 12–24 months of proven performance.
Open the DSCR calculatorNext step
Explore Birmingham heatmaps
See the exact submarket data Priya used to underwrite appreciation and rent growth before the refi.
View Birmingham heatmapsNext step
Join PocketSquad
Track multi-year hold performance, model refi scenarios, and keep every operating statement in one place.
Create an accountThis case study uses a fictional buyer and a representative Charlotte address for illustration. Numbers are rounded to be mathematically consistent and reflect rules-of-thumb investors use to underwrite BRRRR deals — they are not a guarantee of outcome for any specific property.