HELOC on a rental property?

2 Replies

@briangerlach thank you for the info. As an active investor, i would be more attracted to a HELOC on properties i own free and clear (non owner occupies, in an LLC). In theory, it would allow me to minimize my cost of debt services and only pay for capital deployed vs a loan in which i would pay for both unused and used capital.

why doesn't a product like this exist? In terms of risk, perhaps a first position, tenant occupied property with  pre-determined bench mark for cash flow, set # of experience, sounds attractive to me if i were a lender? 

any thoughts?