I've crunched the numbers and looked at my options, and a HELOC sounds like the best option by far for me to leverage my first rental property in order to expand and get more. My hiccup comes with finding a lender who is willing to offer me a HELOC on my rental....I've got lenders willing to provide a HELOC on my primary residence, but I would rather keep my personal home out of my investment business if I can help it. Does anyone have recommendations for how to go about finding a bank that will meet my needs? Are there specific questions I should be asking or certain search terms I should be using so I don't keep getting spammed with 50 calls a day about a cash out refi I never asked for? I feel like I'm banging my head against the wall!
Don't bang that head just yet! What I would do is call local credit unions instead of larger banks. These big banks do not typically like investment real estate, so the smaller ones tend to be less picky. You would be surprised at the different loans and products these credit unions have. They also tend to have more favorable LTV (loan to value) terms.
Give your local credit union a call and ask if they do HELOCs on investment property. I am sure you will get some that don't but it will not take you long to find someone. I used the BRRRR method on some of my properties with a local credit union and am going to do another here soon as well. They are much much easier to work with than those big banks.
Fouad, thank you!!! I will definitely start checking out credit unions to see what my options are. Now for the next piece of the puzzle...my rental property is in a different state than I am. Should I be looking at credit unions located in the state where I live or in the state where my rental property is located???
I've crunched the numbers and looked at my options, and a HELOC sounds like the best option by far for me to leverage my first rental property in order to expand and get more. My hiccup comes with finding a lender who is willing to offer me a HELOC on my rental....I've got lenders willing to provide a HELOC on my primary residence, but I would rather keep my personal home out of my investment business if I can help it. Does anyone have recommendations for how to go about finding a bank that will meet my needs? Are there specific questions I should be asking or certain search terms I should be using so I don't keep getting spammed with 50 calls a day about a cash out refi I never asked for? I feel like I'm banging my head against the wall!