Refinance to pay off heloc and use on another deal

Refinance to pay off heloc and use on another deal

Rental Property Investor · Los Angeles, CA · Member since 2019 · 12 posts · 1 vote

My mom owns a house outright but has a heloc on it (so technically not) but the estimated value is close to $200-250k. Is there any possibility to cash out refinance, pay off the heloc with some of that cash (lower rate potentially) and use the remainder to go buy another deal?

Any tax attorneys or professionals I can connect with to discuss details?

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  • Jaron WallingPro Member
    Rental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
    6y

    The E stands for equity. 

    It depends on how much she took out for the HELOC. If it's worth $250 and she spent $175 I don't see any strategy.

  • Member since 2018 · 12 posts · 6 votes
    6y

    I don't think you need to talk to an attorney. Just find a lender to refinance and pay off the HELOC...

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