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Turnkey Rentals2026-07-11 · 6 min read

A NE Ohio Turnkey Refi That Actually Pencils Out

Jennifer bought a Youngstown duplex two years ago. 1958 construction, new roof and furnace, one long-term tenant and one Section 8. She underwrote the deal at 8/10/10 from day one — she'd seen enough turnkey proformas to know that 5/7/8 was optimistic for a property this age. It still penciled out, so she bought it.

Now her lender is offering 6.50% from her current 7.125%. She ran it through RefiSignal on Conservative.

The Scenario

PropertyYoungstown, OH — 1958-built duplex
Property value$118,000
Loan balance$82,000
Current rate7.125% (26 years remaining)
Quoted rate6.50% (30-year fixed)
Monthly rent$1,550 (two units)
Taxes / Insurance$195 / $88 /mo
Vacancy / Maint / PM8% / 10% / 10% (Conservative preset)
Closing costs$2,900
Investment horizon10 years

What the engine returned

Current P&I → New P&I
$578$518($60/mo improvement)
Monthly cash flow
$255$315(+$60/mo)
DSCR
1.44 → 1.61
Time to recover closing costs
4.0 years
10-Year Advantage (PV-adjusted)
+$1,520
Verdict
Proceed Cautiously(64/100)

What "Wait" means here — and why it's the right signal

Jennifer's DSCR at 1.61 under Conservative assumptions is genuinely strong. A 1.61 DSCR on an 8/10/10 underwrite means this property is actually performing — not just surviving on paper optimism.

So why "Wait" and not "Refi Now"?

The 4.0 years break-even is the constraint. At $60/mo in improved cash flow against $2,900 in closing costs, recouping the fees takes 4.0 years. On a 10-year hold, the 10-Year Advantage of $1,520 clearly justifies the refi. But the score doesn't clear 85 — the "Refi Now" threshold — because the rate drop (0.625 points) is meaningful but not dramatic.

This is the correct signal. The deal isn't broken. The math works. But the current quote, at the current cost structure, doesn't clear the bar for "Refi Now."

What would move this to "Refi Now"

Better rate. At 6.125% instead of 6.50%, the monthly improvement grows and the 10-year advantage clears the threshold. Worth shopping one more lender before accepting this quote.

Lower closing costs. At ~$1,800, break-even falls under 30 months and the readiness score likely crosses 85. Ask the lender about credit options.

The bigger point

This is what conservative underwriting is supposed to do. It revealed a property that actually holds up — DSCR above 1.61 even at 8/10/10, positive cash flow before and after the refi. It also correctly calibrated the verdict: not "Refi Now" on a 0.625-point drop, not "avoid" on a well-positioned property. Just "Wait" — check back when the rate environment moves.

That's the signal investors should trust.