I recently moved out of my home of 8 years that I had aggressively paid down. I kept it and am using it as a rental property now. Its value is about 160k and I owe 39k. I would like to take a Heloc out on it to invest in more properties, but cannot seem to find anyone willing to provide this option on a rental property. Any suggestions?
So why not do a Cash Out Refinance? I think that would be easier. Many companies should be willing to do that.
@Lucas Stringfield I spent about 3 months trying to find a lender to do a HELOC on my investment property. When I finally found one that said that they do them for investors, they denied me AFTER pulling my credit and having me go through rounds of paperwork. Their explanation was that I was too "New" of a real estate investor. Very frustrating.
I decided to go with a cash out refinance instead, and I am in the process of getting my property appraised.
Not sure if that helps, but I figured I would share my experience.
I agree, even though the HELOC might get you possibly more money and be able to reuse it once paid back, if all you can do is the refinance, I recommend that.
All, thanks for the input. The Cash Out Refinance seems to be the direction the banks are pushing as well and may be the next best option. Another reason I've been desirous of a Heloc is that the current mortgage on the property is a 3% fixed. However, this may not be a possibility, so I'll need to move past this mental hurdle.
You'd have to check with your bank, but my bank only does a HELOC on your primary residence. Yours may be different though.
@Lucas Stringfield Have you asked if they would give you a business line of credit to your business backed by the equity in this particular home?
@Aaron Linden I have not looked into this. Perhaps that will be my next step if the current mortgage holder gives me a definite "no" on the Heloc. Thanks for the creative thinking!
Penfed credit union does helocs on rentals
@Lucas Stringfield you got it man! I hope it works out for you!
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