I recently bought a single family home for 36,250. After I am done renovating I will have 46,000 into the property. I talked to the listing agent and she said that it should re-appraise for 70,000.
I would like to take a HELOC out for 20,000 as a down payment for my next investment property.
I met with the loan officer at my local bank and she said that to take a HELOC out, the home that I am pulling equity from needs to be my primary residency.
This throws a wrench in my plan, as I was planning on renting it out and using its equity through a HELOC.
Should I go ask another bank if they could give me a HELOC on a house I am renting or no?
Go ask more banks, there are many that allow HELOCs on rentals. Keep looking, they are out there. It doesn't have to be your local bank or the one you have a mortgage with. Seek and you shall find! I don't have a recommendation for you, but I have been told that they are out there.
Why are you committed to a HELOC? Just do a cash out refinance.
@Andrew B. I hadn’t looked into a cash out refinance! Thanks Andrew!