I'm new to BiggerPockets and was referred to this website by a friend. I was hoping to get the advice of more seasoned professionals. My family has a 3 unit investment property in Cobble Hill Brooklyn NY which has appreciated from $40k when my parents bought it to about $3M today. The mortgage has been paid off for many years and it currently grosses $6,300 a month. My parents live in Boca Raton Florida and just collect the rent checks every month with minimal upkeep. 

I was thinking of getting a HELOC on this investment property. I was able to find a credit union who would do a 5 year draw and 15 year repayment for 4.75% up to 70%LTV, 5.75% up to 80% LTV and 6.75% up to 90% LTV with no maximum cap on the amount as many banks that I researched seemed to have.

Another option would be to get a nonconforming mortgage from a portfolio lender. I am just beginning my search so I haven't researched this yet.

My parents would prefer to keep the property as the area has good renters and continues to appreciate. Besides, the NYC market is slowing and I dont know how fast this property would stay on the market if we did sell.

I feel there is lots of money trapped in the home equity and I want to put it to good use by acquiring real estate elsewhere. I'm very familiar with residential real estate (1 to 4 units) but I think we would be able to use this large sum of money and get into commercial multifamily properties. Alternatively, with a HELOC, I could buy smaller properties for cash and then use the BRRR strategy.

For those of you who have done similar transactions, what's the best approach? What has worked for you?

Originally posted by @Robyn Henderson :

I'm new to BiggerPockets and was referred to this website by a friend. I was hoping to get the advice of more seasoned professionals. My family has a 3 unit investment property in Cobble Hill Brooklyn NY which has appreciated from $40k when my parents bought it to about $3M today. The mortgage has been paid off for many years and it currently grosses $6,300 a month. My parents live in Boca Raton Florida and just collect the rent checks every month with minimal upkeep. 

I was thinking of getting a HELOC on this investment property. I was able to find a credit union who would do a 5 year draw and 15 year repayment for 4.75% up to 70%LTV, 5.75% up to 80% LTV and 6.75% up to 90% LTV with no maximum cap on the amount as many banks that I researched seemed to have.

Another option would be to get a nonconforming mortgage from a portfolio lender. I am just beginning my search so I haven't researched this yet.

My parents would prefer to keep the property as the area has good renters and continues to appreciate. Besides, the NYC market is slowing and I dont know how fast this property would stay on the market if we did sell.

I feel there is lots of money trapped in the home equity and I want to put it to good use by acquiring real estate elsewhere. I'm very familiar with residential real estate (1 to 4 units) but I think we would be able to use this large sum of money and get into commercial multifamily properties. Alternatively, with a HELOC, I could buy smaller properties for cash and then use the BRRR strategy.

For those of you who have done similar transactions, what's the best approach? What has worked for you?

 Figure out what your game plan is going to be. Do you want to fix and flip, buy and hold or a bit of both? Do you want to invest in NY or out of state? Once you've locked down these options then you'll know how much money you'll need to take out.

Regarding the type of loan, I've always been a cash is king kind of guy, so doing a regular 30-year loan would be my first move. But that's just my 2 cents.

Also, if you're going to do the HELOC route make sure that you find out what the requirement is for title seasoning. They might require you to be on title for a certain amount of time if you're going to be on the loan etc.

I hope this all helps and have a great day.

I was leaning more to buy and hold and possibly going commercial in a work force housing type area with demand and cashflow. At this point, I'm open to out of state investing and am not tied to NY/NJ where cap rates are low. 

Originally posted by @Shaun Weekes :

Originally posted by @Robyn Henderson:

I'm new to BiggerPockets and was referred to this website by a friend. I was hoping to get the advice of more seasoned professionals. My family has a 3 unit investment property in Cobble Hill Brooklyn NY which has appreciated from $40k when my parents bought it to about $3M today. The mortgage has been paid off for many years and it currently grosses $6,300 a month. My parents live in Boca Raton Florida and just collect the rent checks every month with minimal upkeep. 

I was thinking of getting a HELOC on this investment property. I was able to find a credit union who would do a 5 year draw and 15 year repayment for 4.75% up to 70%LTV, 5.75% up to 80% LTV and 6.75% up to 90% LTV with no maximum cap on the amount as many banks that I researched seemed to have.

Another option would be to get a nonconforming mortgage from a portfolio lender. I am just beginning my search so I haven't researched this yet.

My parents would prefer to keep the property as the area has good renters and continues to appreciate. Besides, the NYC market is slowing and I dont know how fast this property would stay on the market if we did sell.

I feel there is lots of money trapped in the home equity and I want to put it to good use by acquiring real estate elsewhere. I'm very familiar with residential real estate (1 to 4 units) but I think we would be able to use this large sum of money and get into commercial multifamily properties. Alternatively, with a HELOC, I could buy smaller properties for cash and then use the BRRR strategy.

For those of you who have done similar transactions, what's the best approach? What has worked for you?

 Figure out what your game plan is going to be. Do you want to fix and flip, buy and hold or a bit of both? Do you want to invest in NY or out of state? Once you've locked down these options then you'll know how much money you'll need to take out.

Regarding the type of loan, I've always been a cash is king kind of guy, so doing a regular 30-year loan would be my first move. But that's just my 2 cents.

Also, if you're going to do the HELOC route make sure that you find out what the requirement is for title seasoning. They might require you to be on title for a certain amount of time if you're going to be on the loan etc.

I hope this all helps and have a great day.

Welcome to BP, this is a great place to gather knowledge.

3m in equity is a lot of money. I Don’t see a problem in borrowing a small percentage of that to grow and expand, especially to start. 

$6300 cash flow is a lot, but you can drop that too $5500 and still have 150k to invest with (guesstimate). 

Good luck!