BRRRR Question on HELOC

[Michael Abernathy]

Can someone help me understand the refinance part of BRRRR. I know the general principle is to refinance the property and pull out the cash to pay off any debt (Hard money lender, rehab costs, etc...). I have a $50K HELOC against a rental property that I wanted to use to purchase another rental. I am currently looking at a property with a purchase price of $30K. It will need around $15K in rehab costs. It should conservatively rent for around $800 per month. The ARV should be around $75K.

I just called my bank to make sure I was not missing anything when it was time to do the refi. The loan agent said that they do not do cash out refi's on rental properties. My only two options would be another HELOC or a fixed 15 yr equity loan at around 9% interest.

Am I missing something or is it just my bank (Navy Federal Credit Union)

Thanks,

Mike