Rental Property Investor · Torrance, CA · Member since 2016 · 724 posts · 1k+ votes
I want to use equity to pay cash for a property out of state. I have about $160,000 in equity right now. I'd love to do a HELOC but hear it's only possible on a residence. What's the best way?
@Account Closed the amount of equity isn't as important as the percentage of equity. On an investment property you can get a cash out mortgage pretty simply and 75% of the value of the home will be the maximum. It is harder to find a lender willing to place a "Line of Credit" on your investment property but it is possible. Most will limit the amount from 50%-70%. And the figures I gave are the TOTAL loan to values. So if you have a mortgage on the home that is 70% of the value then you will be limited to the remaining amount to get a cash out mortgage....and none for a line of credit. I hope this explanation makes sense. Feel free to ask more questions if you need. Thanks!