A cash-out refinance lets you turn your rental property’s built-up equity into usable capital for upgrades, repairs, or reinvestment.
For coastal owners in Wilmington, Wrightsville Beach, or Oak Island, refinancing during the winter is a smart way to prepare your home for peak rental season, boosting both property value and guest appeal before spring bookings begin.
Let’s dive in.
What is a Cash-Out Refinance?
A cash-out refinance replaces your existing mortgage with a new, larger loan.
The difference between the two loans comes back to you as usable cash, allowing you to tap into your property’s built-up equity now instead of waiting until you sell.
Unlike a traditional refinance focused on lowering your monthly mortgage payment, a cash-out refinance is designed to free up funds for upgrades, repairs, or reinvestment- even in another property.
It’s an ideal option for investment properties with strong or growing equity, especially when you want to reinvest that value back into your rental’s performance.
TAG Tip: Many DSCR loan investors are using cash-out refis to fund upgrades for their rental properties without tapping into personal savings.
How Investors Are Using Cash-Out Funds
For Wilmington-area property owners, a cash-out refinance can be the key to turning equity into upgrades that attract more guests and higher nightly rates.
To reinvest wisely, focus on upgrades and repairs that strengthen both rental income and long-term property value.
Not every project delivers the same return, so it’s worth identifying which ones offer the most impact.
Here are a few high-ROI projects we commonly see:
- Kitchen and bathroom remodels: Modern finishes and open layouts appeal to guests and future buyers alike
- Desk expansions or outdoor kitchens: Renters in beach towns like North Myrtle Beach or Carolina Beach love usable outdoor space during peak season
- Home additions or bonus rooms: Add livable square footage, one of the most direct ways to increase appraised value
- Covered patio or screened porches: Extend the seasonality of outdoor living spaces, helping increase off-season bookings
TAG Tip: While features like hot tubs may help with short-term bookings, they’re typically considered personal property and don’t add to your appraised value. Build your renovation budget around real property upgrades that will reflect in your appraisal.
Why the Off-Season is Perfect for Cash-Out Refinancing
For coastal towns like Kure Beach and North Myrtle Beach, rental bookings tend to slow down between fall and early spring. This slower period is the perfect time to refinance, access your equity, and start preparing your rental for next season’s demand.
Here’s why:
- Contactor availability: With fewer renovation projects on their schedules, contractors can start and finish your upgrades faster
- Lender efficiency: Few refinance applications in winter mean less backlog, helping you close sooner
- Minimal guest disruption: Complete repairs while bookings are slow, keep your guests (and your reviews) happy
- Ready for peak season: Finish improvements early and start earning higher nightly rates when the market heats up
Why Your Appraisal Matters in a Cash-Out Refinance
A real estate appraisal is one of the most essential steps in a cash-out refinance.
It determines your property’s current market value, which your lender uses to calculate how much equity you can access.
Having an appraisal partner who understands local submarkets can make a big difference in valuation accuracy.
A precise, locally informed appraiser can ensure you’re not leaving value, or available cash, on the table.
The TAG team provides fast, reliable appraisals for rental and investment properties across the Wilmington coast, helping you make the most of your home’s equity.
Whether you’re upgrading before next season or expanding your investment portfolio, we’re here to help you unlock the true value of your property- TAG us in!
Want to order a private appraisal BEFORE refinancing and pulling your credit? Contact us!
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