Equity Line of Credit for Rental Property

Equity Line of Credit for Rental Property

Member since 2018 · 127 posts · 106 votes

I am a new landlord, as of December 2018.  After a few months of being a landlord, I feel confident in expanding my business to a couple more properties.  However, like most new investors, getting financing is a challenge.  I purchased my house in 2016 and lived in it until 2018, renovating it throughout the years until I was ready to rent it.  I estimate that I have between $50,000 - $70,000 in equity in the house that I want to use.  However, I have found that banks do not want to give lines of credit to rental owners.  What is the best way to find an equity line of credit on a rental property in?  My current rental is located in south Kansas City.

I looked into refinancing my home, however, the profitability in my current property would errode significantly. The money I would be able to get out of a refinance would not make up for the loss of profitability on my first rental (assuming I purchase two more homes having a total of three properties). When I purchased my home, I did not have the BRRRR strategy in mind, as I was not looking to rent it out at that time.

To restate, what is the best way to find an equity line of credit on a rental property?  I would also appreciate contacts of potential investors as well if you have them.

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  • Rental Property Investor · Delray Beach, FL · Member since 2014 · 224 posts · 169 votes
    7y

    Some credit unions will do HELOCs on non-primaries. Call around and ask.

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