If you own a rental in Collierville and expect a big check from a DSCR cash out refinance, run the coverage number before you call anyone. Most brokers won’t tell you that this is a premium, owner-occupied suburb where rents lag prices. In Collierville East, Tennessee, the equity is real on paper but often hard to extract at full leverage. The east side of the Town of Collierville sits in Shelby County, inside the Memphis metro, and the question is which properties can carry the loan.
At a Glance: A DSCR cash out refinance on an investment property in Collierville East, Tennessee is underwritten primarily on the property’s rental income measured against its full monthly obligation, with the borrower’s existing equity determining the ceiling.
DSCR Cash-Out Calculator
Run the cash-out numbers in Collierville East, TN
Rate source: Freddie Mac 30-yr average via FRED® — Federal Reserve Bank of St. Louis · effective Sep 24, 2026
Prefilled with starting assumptions — enter your property’s value, balance, taxes, and insurance for a more accurate picture.
Program parameters update from Lendmire’s centralized guideline source. Taxes and insurance are editable estimates.
As of Sep 24, 2026 · General Freddie Mac market benchmark, not a Lendmire loan offer. Property value, balance, taxes, and insurance are editable estimates. Maximum loan-to-value varies by lender, program, property type, and seasoning. Not a Loan Estimate, approval, or commitment to lend. Program availability and eligibility are subject to lender guidelines, credit approval, property review, and underwriting.
- Redfin puts the citywide median sale near $535,000, so most houses face thin coverage at full leverage.
- Cash-out LTV tops out at 75 percent, with about 6 months of ownership seasoning.
- The 3-bed entry tier near $355,000 pencils best of the single-family options.
- Schilling Farms has the new multi-unit product but thin, softening resale comps.
- Sub-1.00 files exist, but they usually mean lower leverage and heavier lender review.
Why the Citywide Number Fails Most Cash-Outs
The citywide math is the problem. Redfin shows a median sale price of about $535,000, down 2.8 percent year over year, with homes taking 31 days to sell versus 25 a year earlier. RentCafe puts the average three-bedroom rent at $2,149 and the all-unit average at $1,694, up 1.51 percent. Apartment List, using a different method, reports a median of $1,422, up 0.2 percent. Rent growth here is flat to low single digits, not a tailwind.
Monthly gross rent against a $535,000 value runs about 0.4 percent. That is a writer’s illustration, not a sourced statistic, but the direction is clear. Model that house at the full 75 percent cash-out cap, with taxes and insurance in the payment, and coverage lands around 0.65x. That is well under the standard 1.00 benchmark.
Say you own a $535,000 house that rents for $2,149. Full leverage doesn’t clear, and neither does most of the range below it. Three paths may apply, subject to lender guidelines, credit approval, and property review: a sub-1.00 program, an interest-only structure, or a smaller cash-out request. Each reshapes the file, and none is a promise.
| Scenario (modeled) | Value | Leverage | Coverage read |
|---|---|---|---|
| Citywide median, 3-bed rent | $535,000 | 75 percent | About 0.65x |
| Entry east-side 3-bed | $355,000 | 75 percent | About 0.95x |
| Same entry 3-bed | $355,000 | 60 percent | Above 1.1x |
Coverage is calculated on full PITIA, including taxes and insurance. Rent is a modeled $2,149 in the first row and $2,000 in the others.
The Entry-Level East Side House Is the Better Candidate
The lower-priced three-bedroom is where cash-out works best. Pricing and available terms vary by lender, borrower profile, property type, and full underwriting review. Current Zillow house listings in the 38017 ZIP show asks from $1,350 for a 956-square-foot three-bed to $3,295 for a five-bed. Those are asking rents, not signed leases.
The spread tells the story. Dollar rent climbs with size, but not in proportion to price. A $355,000 house renting near $2,000 gives gross rent of roughly 0.56 percent of value monthly. That beats the citywide picture by a wide margin. A five-bed at $1 million does not.
Run the numbers on that entry house using a modeled $2,000 rent. At the full 75 percent cap, coverage sits just under 1.00, around 0.95x including taxes and insurance. Drop leverage to about 60 percent and the same house clears 1.1x. You take out less cash, but the file is cleaner and the debt sits comfortably under the rent. For a lot of investors that is the right trade.
Skip the $1 million east-side homes for DSCR cash-out. They are fine as places to live and poor as leveraged rentals. Even a strong rent leaves coverage far below 1.00 at any leverage that produces meaningful proceeds.
Appraisals Are the Hidden Variable
Don’t underwrite against a price you paid or a Zillow estimate, because the appraiser decides. Collierville’s comp pool is deep, and Resideline tracked a large volume of recent sales with a wide range of prices. The middle half of those sales spanned a broad band from the mid-$400,000s to well above $600,000. That spread is wide. Two houses a mile apart can appraise very differently depending on which subdivision comps the appraiser pulls.
The trend adds pressure. Zillow puts the average home value at $513,352, up just 0.7 percent, while Redfin shows a decline. A local agent’s Market Pulse post citing Redfin data reports 42.3 percent of listings took a price drop before selling, though closings still landed near 98 percent of final list price. The practical read: an investor who bought near an original ask may see an appraisal that trims the equity they expected.
Don’t count on appreciation to create the cash-out. Flat to slightly negative pricing means proceeds rest on today’s appraisal, today’s rent, and the 75 percent ceiling. About 6 months of ownership seasoning, measured from title recording, is the baseline, and it gives you no reason to rush an appraisal that may come in soft.
(If you’re sitting at the seasoning line, wait for the right comp set instead of forcing the refi.)
Schilling Farms: The Multi-Unit Angle, With a Catch
Schilling Farms is the one place in town where duplexes and triplexes get built, and it is also the weakest market for resale. Boyle Investment Company describes the Water Tower District as a 50-acre mixed-use development in the northwest corner of Schilling Farms. It will include townhouses, duplexes, triplexes, and apartment buildings, and phase one is 28 residential buildings and 40,000 square feet of retail. It sits within a mile of several corporate headquarters, including the FedEx World Technology campus.
The demand logic holds up. The town’s leading employers page lists more than 2,400 employees at FedEx World Tech, at average pay near $93,500. Helena Chemical’s corporate headquarters is nearby too.
Here’s the catch. Redfin’s Schilling Farms page shows a $425,000 median, down 8.3 percent year over year, with homes taking 148 days on average versus 132 a year earlier. Only 5 homes sold in May, and Redfin calls the area “not very market-rate.” A five-sale sample can mislead in either direction, but for a refinance it means thin comps and conservative valuations. Most of the product is also new-build at new-build pricing. Confirm whether units are for-sale or build-to-rent before you count on them.
Nearby rents give a ceiling check. Carrington at Schilling Farms lists two-bedrooms from $2,068 and three-bedrooms from $2,735. A small multi-unit owner won’t collect much above that. Duplex, triplex, and fourplex rents weren’t verifiable in research, so underwrite those from local comps.
Historic Square: Scarce Stock, Modest Coverage
Downtown Collierville offers scarcity, not yield. The Town of Collierville’s 2040 residential planning page expects more compact multi-family downtown, but limited vacant land keeps it small. It also reports 3,038 stand-alone apartment units built or approved, 86 percent of the 3,532-unit cap. Large competing complexes are therefore constrained, which supports rent durability for existing small stock.
Existing small multifamily is rare. Homes.com shows multi-family listings from $329,901 to $1,635,000, with an average of 82 days listed. A Zumper listing snapshot shows a three-bed, 3.5-bath townhouse off the Historic Square asking $2,400 with a first-month-free concession. That is a premium to a typical house, and the concession shows landlords negotiating.
The more plausible cash-out here is a small building held for years with equity built through paydown and basis, not through the market. If you own one, you are sitting on scarcity value. If you’re shopping for one, expect to compete with owner-occupants.
Who Actually Rents Here
Tenant demand is dependable, and it comes from employment, not from a student or tourism base. Collierville had 51,324 residents in the 2020 Census, per the Town of Collierville. Population change from 2019 to 2024 was just 2.9 percent, and renters are a minority at 19 percent of households. Median household income runs about $138,598, per ACS-derived data.
Resident employment is led by transportation and warehousing (3,400 people), health care and social assistance (3,361), and manufacturing (2,922), per Data USA. That mix supports steady long-term leasing, and the town reports 64.7 percent of residents hold a bachelor’s degree or higher. No large residential campus is in town, so don’t underwrite a student-rental thesis. Workforce-yield stock lives in nearby Memphis, not here.
What a DSCR Cash-Out Actually Requires
The parameters are simple, and the property has to carry them. Most standard programs use a 1.00x benchmark, meaning rent used for lender review covers the full payment (principal, interest, taxes, insurance, and any HOA). Some lenders review lower ratios, but those files usually need stronger compensating factors, less leverage, or more cash in reserve. Start with the guide “What Is a DSCR Loan” if the mechanics are new.
For cash-out on a Collierville investment property, typical guidelines run as follows, subject to lender guidelines and program terms:
- Leverage is capped at 75 percent LTV on cash-out.
- Seasoning is about 6 months of ownership from title recording.
- Credit tiers run 620, 660, 680, and 700, with 620 the floor.
- Reserves run about 6 months of PITIA, or about 9 months above $1,500,000.
- Loan sizes go up to $3,000,000 on standard programs.
Proceeds depend on rent used for lender review, PITIA, reserves, and the 75 percent ceiling. They are not a guaranteed figure. LLC vesting is common, subject to lender program eligibility. For the mechanics, see the guide “The Refi Options”, and for a cleaner look at alternatives, review refinancing options and the program-to-program comparison.
Once you have proceeds, the question is where they go. Cash pulled from a Collierville house can fund a deal in a higher-yield market. Memphis-area workforce product is where rents relative to price are strongest, though that is a separate underwriting exercise. The Collierville house stays as the low-yield, stable holding that supplies the capital.
Frequently Asked Questions
How do you qualify for a DSCR cash-out refinance in Collierville East?
Qualification centers on the property’s rent relative to its full monthly obligation, plus equity, credit, and reserves. Programs typically want about 1.00x coverage, a 620 minimum credit score, about 6 months of ownership, and reserves near 6 months of PITIA. Everything is subject to lender guidelines and property review.
DSCR vs. conventional financing
Two common ways to finance an investment property in Collierville East, TN. They qualify you differently — here’s how investors weigh them.
Why investors choose it
- Qualifies on the property’s rental income — no personal tax returns, W-2s, or pay stubs needed to document income.
- No personal debt-to-income ceiling to clear, so existing mortgages and obligations don’t cap your borrowing the same way.
- Can be closed in an LLC, keeping the property inside a business entity.
- Built for scaling — not held to the limit on number of financed properties that conventional financing applies.
- Underwriting centers on the deal: generally qualifies when the rent covers the payment, a 1.00x coverage ratio being a common baseline (confirmed in underwriting).
- Designed specifically for investment property, including long-term and, where the program allows, short-term rentals.
Where it’s strong
- Often the lowest ongoing financing cost for a buyer who fully qualifies on personal income — a fit for a first property or a cost-first purchase.
Trade-offs for investors
- Requires full personal income documentation and must fit within a debt-to-income limit — salary, existing debts, and other mortgages all count.
- Typically held in your personal name rather than a business entity.
- Caps how many financed properties you can carry, which can become a ceiling as a portfolio grows.
- Evaluates you as a borrower as much as the property, which usually means more paperwork.
How investors usually choose: a first or single property often optimizes for the lowest financing cost; portfolio builders often optimize for leverage, vesting in an LLC, and scaling past conventional caps. The right answer depends on your goals, the property, and current guidelines — both paths run through select lenders in Lendmire’s wholesale network, with eligibility and terms confirmed in underwriting.
What are the requirements for an investment property cash-out refinance in Collierville, Tennessee?
Expect a 75 percent LTV ceiling, about 6 months of seasoning from title recording, and a lender-ordered appraisal. Loan amounts go up to $3,000,000 on standard programs, and reserves are about 6 months of PITIA. Because Collierville prices are high against rents, coverage is usually the binding constraint, not credit.
Will Collierville’s flat prices shrink my cash-out?
They can. Redfin shows prices down 2.8 percent year over year while Zillow shows a 0.7 percent gain, so appraisals may land near or below what you paid. Proceeds rest on today’s appraisal and rent, not on appreciation you were counting on.
Can a self-employed investor buying in Collierville East be reviewed for DSCR financing?
Yes, DSCR files are reviewed primarily on the property’s rental income rather than personal income paperwork, subject to program terms. Lendmire arranges DSCR investor loans. Reach the team at 828-256-2183.
Are Schilling Farms duplexes and townhomes better for cash-out than a house?
Not necessarily. They offer multi-unit income, but resale comps are thin, with only 5 sales in one recent month, and pricing is new-build. Appraisal risk can offset the rent advantage.
For current guidelines and terms, see Lendmire’s DSCR loan programs page.
What to Watch Next Quarter
Three indicators will tell you whether to move on a Collierville cash-out or wait.
- Days on market and price-drop share. Redfin’s 31 days is up from 25, and 42.3 percent of listings took a drop. If those keep climbing, appraisals get harder.
- Schilling Farms sales volume. Five sales in a month is too thin to trust. More closings at firmer prices would signal that the Water Tower District product is finding buyers.
- Rent movement. RentCafe shows 1.51 percent growth and Apartment List 0.2 percent, and if 3-bed rents move toward $2,300, the coverage math on the $355,000 tier improves.
Collierville rewards the investor who treats it as a stable, low-yield hold and watches the appraisal, not the asking prices.
For broader investor-financing rules and property-type coverage across the state, see Tennessee DSCR loans.
About Lendmire
Lendmire (NMLS# 2371349) is a mortgage brokerage built around DSCR investor lending, with programs available in 41 markets, including Washington, D.C. DSCR lenders commonly evaluate rental-income coverage instead of personal income paperwork, a practical fit for LLC-owned and multi-property investors. Terms vary by lender, property, leverage, and program. The firm is recognized as a 2026 Scotsman Guide Top Mortgage Workplace and a 2025 Scotsman Guide Top Mortgage Workplace. Investors should verify current local rental rules, taxes, and insurance with qualified local professionals.
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References
1. Redfin
2. RentCafe
3. Zillow
4. Resideline
6. colliervilletn.gov — Site Selection Data Leading Employers
7. Redfin’s Schilling Farms page
8. Town of Collierville’s 2040 residential planning page
9. Homes.com
10. Zumper
12. Data USA
13. a 2026 Scotsman Guide Top Mortgage Workplace
14. a 2025 Scotsman Guide Top Mortgage Workplace
This article is part of Lendmire’s investment property cash-out refinance program — full qualification details, guidelines, and scenarios live on the program page.
Related reading: DSCR Cash Out Refinance in Collierville, Tennessee: Can Your Rent Cover a Cash-Out Loan Here? · How to Cash Out Refinance Investment Property Collierville Tennessee · DSCR cash out refinance investment property Collierville East Tennessee
Guides: Investment Property Cash-Out Refinance in Collierville, TN · Investment Property Cash-Out Refinance in Tennessee
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Compliance and disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage broker and is not a direct lender, depository institution, financial advisor, or tax professional. Content in this article is general market analysis and educational information — not financial, legal, or tax advice for any specific situation. Lendmire does not guarantee loan approval; every transaction is subject to underwriting by the funding lender. Mortgage pricing and loan program guidelines are subject to change at any time without notice and vary by borrower characteristics, property type, and state regulations. Lendmire complies with Equal Housing Opportunity. Licensure verification: NMLS Consumer Access.