If you own a rental near Pawleys Island and assume the headline rent and headline value will carry a cash-out refinance, here’s what most brokers won’t tell you: neither number is usable. Listing sites show rents near $3,859 a month. The long-term rent that a lender will actually count is far lower, and that gap decides how much equity you can pull.
TL;DR: A cash-out refinance in Pawleys Island, South Carolina is underwritten primarily on the property’s long-term rent measured against its full monthly obligation, so the gap between vacation-style listings and unfurnished leases, not the luxury sale comps, sets proceeds. Per Zillow Rental Manager data, three-bedroom rents average $2,600.
DSCR Cash-Out Calculator
Run the cash-out numbers in Pawleys Island, SC
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.
- Cash-out is typically capped at 75% LTV, with about 6 months of seasoning.
- Standard programs are built around a 1.00x baseline; full PITIA includes taxes and insurance.
- Georgetown County’s median rent is $1,531 per RentalSource.
- Reserves of about 6 months PITIA are typical, subject to lender guidelines.
Lendmire (NMLS# 2371349) structures DSCR scenarios for investors targeting Pawleys Island, South Carolina and places them with wholesale lenders across 41 markets, including D.C. The brokerage does not approve or fund loans. Lenders do that, subject to their own guidelines.
Pawleys Island Market Snapshot
A quick read on the Pawleys Island investor landscape — figures come from the cited sources below. Confirm current property-level numbers before underwriting.
| Metric | Detail |
|---|---|
| Home prices | $999,081 median home price (NeighborhoodScout – Pawleys) |
| Typical rents | $2,678 avg (NeighborhoodScout – DeBordieu) |
| Recent appreciation | +169.6% yoy (Redfin – Pawleys Island Housing) |
| University enrollment | 11,881 students (Wikipedia – Coastal Carolina) |
| Population | 170 (Census Reporter (ACS 5-Year)) |
| Employment | 2,500+ employees (Glassdoor – Tidelands Health) |
Which Pawleys Island Are You Refinancing?
The incorporated town is tiny. Census Reporter shows 170 residents and about 242 people per square mile. The market investors mean by “Pawleys Island” is the Waccamaw Neck, a peninsula between the Atlantic and the Waccamaw River that shares ZIP code 29585 with Litchfield Beach, per Wikipedia. The rental catchment is Georgetown County, at roughly 65,000 residents according to the Waccamaw Regional Council of Governments.
That mismatch produces the widest value spread a cash-out borrower will see anywhere in South Carolina. Redfin reports a median sale price of $2.0 million, up 169.6% year over year, on a thin sample. NeighborhoodScout puts the town-proper median near $999,081. Movoto’s broader figure is $565,000, with 338 homes sold in its latest monthly count. This article uses the Movoto $565,000 as the working median because it better reflects attainable inventory. The other two figures mostly capture oceanfront estates.
Thin samples also mean appraisers have few comparables to draw on. Redfin scores the market 25 out of 100 for competitiveness, and homes take about 75 days to sell. An owner who expects a fast mark-up on appraisal should plan for conservative comps instead.
What Seasoning Actually Means Here
Seasoning is about 6 months of ownership, measured from title recording. That is a typical program guideline, not a promise, and lenders vary on it.
The bigger constraint is LTV. Cash-out refinances are typically capped at 75% of appraised value, well below the purchase ceiling. Equity available depends on three inputs: rent used for lender review, full PITIA (principal, interest, taxes, insurance, and any HOA dues), and the 75% ceiling. The ratio is monthly rent divided by that total obligation. Most standard DSCR programs use 1.00x as the baseline because rent covers the obligation at that level. Some lenders may review lower ratios with compensating factors such as reduced leverage, more reserves, or different pricing. Typical reserves run about 6 months of PITIA, and credit tiers generally start at a 620 floor. Loan sizes go up to $3,000,000 on standard programs. All of this is subject to lender guidelines, credit approval, and property review. The guide “What Is a DSCR Loan” covers the mechanics.
The Rent Number Nobody Models Correctly
Listing aggregators show Pawleys Island median rent near $3,859, per Homes.com. That figure is dominated by furnished vacation-style listings. A corporate-style one-month stay at Litchfield by the Sea was advertised at $3,476. Use neither as rent used for lender review.
The long-term picture is lower and steadier. Zillow Rental Manager shows an average of $2,200 across all property types, $1,700 for two-bedrooms, and $2,600 for three-bedrooms. Georgetown County’s median is $1,531, about 9% above the South Carolina median. Investors modeling off headline rents will overstate income, and the refinance will come back smaller than planned.
Vacancy looks favorable for long-term leases. Affordable Housing Online reports county rental vacancy near 0%. A Coastal Observer housing analysis found that many tourism-sector workers can afford roughly $589 a month in rent, yet there are no homes or apartments at that price in the county. That is an unmet tier of demand below $1,000, and an unfurnished rental in the $1,700-$2,600 band faces limited direct competition.
Run It: A $565,000 Cottage
Take a modeled case. The inputs are assumptions, not sourced market facts: a $565,000 single-family home, long-term rent of $2,600 (the Zillow three-bedroom average), a 30-year structure, and PITIA including taxes and insurance at South Carolina average loads.
At 75% LTV, coverage lands around 0.8x. That is below the 1.00x baseline. Drop leverage toward 55% and the ratio moves to roughly 1.0x, still including taxes and insurance. At 50% it rounds to about 1.1x. Terms vary by lender guidelines, property type, leverage, credit profile, and full file review.
So the answer is “less than you hoped.” Pulling cash out at 75% on a $565,000 property rented at $2,600 is a stretch. For sub-1.00 files, the structures a lender may review include lower leverage, an interest-only option, or a program that accepts ratios below the baseline with more reserves or cash in. Whether any of these applies is up to the lender’s guidelines and property review. Exact terms depend on the lender’s guidelines, property type, leverage, and a full review of the borrower’s file.
A cheaper asset changes the picture. Movoto shows a median list price near $449,000 in neighboring Murrells Inlet. Modeled against $2,200 rent, the full-payment ratio at 75% LTV comes out between roughly 0.82x and 0.90x, depending on the rate environment, once principal, interest, taxes, and insurance are all counted. That is closer to the line than the pricier example above, but it is still short of 1.0x. Lowering leverage, choosing an interest-only option where a lender offers one, or bringing more cash and reserves can move a file like this closer to 1.0x, though none of that is assured. Price-to-rent compresses as you move inland, which is why the long-term-rental pockets below matter. Every figure here varies by lender and program, and guidelines, property type, leverage, and credit profile all apply.
Where the Math Holds (and Where It Doesn’t)
Waverly Mills and Traditions/Willbrook Plantation are the most workable submarkets for a long-term-lease refinance. Both sit inland of the oceanfront colonies, and Traditions/Willbrook is a golf-community single-family market positioned below resort pricing. Prices are friendlier to a standard 12-month lease. Neither has a verified rent dataset, so build the model on the town-level $1,700-$2,600 band and the $1,531 county median.
Litchfield Country Club and Litchfield Plantation sit in the middle: upscale single-family homes and villas behind gates. Rent-to-value depends heavily on the individual asset. Run each one on its own.
DeBordieu Colony. NeighborhoodScout puts the median price at $927,387 and average rent at $2,678. Vacancy is 40.7%, with 38.9% of housing seasonally occupied. The ratio there is low by construction. Rent covers a fraction of the obligation at any meaningful leverage.
The historic island core is almost entirely seasonal, with minimal long-term rental stock. Skip it for a long-term-income refinance.
Small multifamily is scarce. No verified source confirms duplex or fourplex inventory specific to Pawleys Island. In nearby Georgetown, per RentCafe, 28% of housing is rented, 76% of apartments sit in complexes of fewer than 50 units, and 20% are single-family rentals. Appraisers there are used to small-scale product, which helps a single-family or small-building refinance. The county has also scouted a 14-acre tract off Petigru Drive for workforce housing, per the Post and Courier. New competing supply here is slow and contested.
Working DSCR brokers see a recurring pattern in resort-adjacent markets like this one: the appraisal comes back anchored to the nearest sold comps, which are often luxury or second-home sales, while the lender’s rent schedule is anchored to local unfurnished leases. Files that model both before applying tend to set realistic proceeds. Files that model only the appraisal tend to shrink at the coverage test.
Who Rents, and Who Employs Them
Georgetown County’s employment base shifted sharply. International Paper permanently closed its Georgetown pulp and paper mill at the end of 2024, eliminating 674 jobs (526 hourly, 148 salaried), per Packaging Dive. It was the county’s largest employer. A Coastal Carolina University economist told the Post and Courier those jobs will be hard to replace.
Health care has taken the top slot. The county’s Economic Development Element shows Health Care and Social Assistance leading with 4,605 employees, followed by Accommodation and Food Services. Tidelands Health runs four hospitals and more than 70 outpatient locations, with more than 2,500 employees, physicians, and volunteer partners. The Murrells Inlet hospital is a short drive away.
That cuts two ways. Health care and hospitality workers fill the $1,700-$2,600 rental band. But a market that lost its largest employer should be stress-tested. Run coverage at 5-10% below the rent you expect. Thinking out loud: the cleaner play may be the inland single-family asset at modest leverage. Buyers chasing appreciation in the oceanfront colonies could argue the other way, but the coverage math is what a lender will see.
Proceeds matter less than what they fund. Equity extracted at conservative leverage can seed the next acquisition, and the cash-out refinance walkthrough shows the mechanics. For a broader view, the refinance pathway for investor properties covers rate-and-term alternatives. The side-by-side comparison explains why income-based underwriting suits owners whose returns are hard to document conventionally.
Skip the Oceanfront Comps.
A few rules for this market:
- Use the lower, long-term rent band, never the vacation-inflated listings.
- Expect appraisers to lean conservative on thin, luxury-skewed sales.
- Budget for reserves on top of the coverage test.
- Hold title in an LLC only if the program allows it, which varies by lender program requirements.
Investors can see the wider footprint at South Carolina DSCR investor loans, or reach Lendmire at 828-256-2183 for a scenario review. Verify current local rules, taxes, and insurance with qualified local professionals before underwriting.
Frequently Asked Questions
How do you qualify for a DSCR cash-out refinance in Pawleys Island?
A lender reviews the property’s long-term rent against its full monthly obligation, typically with a 1.00x baseline, about 6 months of seasoning, and a cash-out LTV cap of 75%. Credit tiers generally start at a 620 floor, with reserves around 6 months PITIA. Local rent, not the sale price, drives the result, and all of it is subject to lender guidelines.
DSCR vs. conventional financing
Two common ways to finance an investment property in Pawleys Island, SC. 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 loan in Pawleys Island, South Carolina?
Typical guidance includes a minimum credit score, reserves, and a coverage ratio built on market rent. Manufactured homes, log homes, and barndominiums are outside the network’s DSCR programs. Loan amounts run up to $3,000,000 on standard programs. Eligibility depends on borrower, property, and lender.
Why do appraisals complicate cash-out refinances here?
The sales sample is thin and luxury-weighted. Redfin’s median of $2.0 million and Movoto’s $565,000 describe different markets. Appraisers may lean on conservative comps, and Redfin’s competitiveness score of 25 out of 100 signals a slow market. Investors should not assume aggressive equity extraction.
Does the International Paper closure change rental demand?
It removed 674 jobs from the county’s largest employer, but the county’s vacancy was reported near 0% and health care is now the largest sector. The closure argues for stress-testing rent, not abandoning the thesis. Modeling coverage with a cushion is the practical response.
What DSCR terms may lenders review for investors in South Carolina?
Lendmire arranges DSCR investor loans through wholesale channels. One key feature lenders review is a coverage ratio built on rental income instead of personal income, subject to lender guidelines.
For current guidelines and terms, see Lendmire’s DSCR loan programs page.
About Lendmire
Lendmire is a non-QM mortgage brokerage (NMLS# 2371349) arranging DSCR investor loans in 41 markets, including Washington, D.C., through wholesale and investor-lending channels. Lenders evaluate these loans primarily on rental income instead of personal income, subject to lender guidelines. That suits LLC-owned portfolios, self-employed investors, and operators scaling past conventional loan caps. Lendmire was recognized as a 2026 Scotsman Guide Top Workplace and as a top-ranked workplace in 2025.
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References
2. RentalSource: Georgetown County
3. NeighborhoodScout – Pawleys
4. NeighborhoodScout – DeBordieu
5. Redfin – Pawleys Island Housing
6. Wikipedia – Coastal Carolina
7. Census Reporter (ACS 5-Year)
8. Glassdoor – Tidelands Health
9. Wikipedia
10. Waccamaw Regional Council of Governments
11. Homes.com
13. Coastal Observer
14. RentCafe
15. Post and Courier
16. Packaging Dive: International Paper Georgetown closure
17. Tidelands Health
18. a 2026 Scotsman Guide Top Workplace
19. Scotsman Guide — Top Workplaces 2025
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: Cash Out Refinance Investment Property in Pawleys Island, South Carolina: The Rent Reality Check · DSCR Loans Pawleys Island & Georgetown · DSCR Cash Out Refinance in Sullivans Island, South Carolina: How Rent Math Clears at 75% LTV
Guides: Investment Property Cash-Out Refinance in South Carolina
Brandon Miller
Founder & CEO, Mortgage Loan Originator, Lendmire LLC
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Important disclosures. Lendmire (NMLS# 2371349) is a licensed mortgage brokerage. Lendmire is not a direct lender, depository institution, or financial advisor. All loan inquiries are subject to lender underwriting; this article does not constitute a commitment to lend. Rates, terms, and program guidelines are subject to change without notice and vary by borrower profile, property type, and state. Information in this article is general in nature and is not financial, legal, or tax advice. Equal Housing Opportunity. NMLS Consumer Access: nmlsconsumeraccess.org.