HELOC on Investment property

[Steve Weinstein]

Hello everybody. I have a few rental properties and I am looking to purchase more. I am looking to get a HELOC to fund my next deal. Anybody here do this? If so, which banks would you suggest?

Thanks 

Steve

[Kyle J.]

Originally posted by @Ed Matson:

@Steve Weinstein - If you have a choice between a cash out refi and a HELOC, I would do the cat out REFI. Interest on HELOC's now are only deductible if used to improve the property subject of the HELOC.

The interest on a HELOC would also be deductible if it was used to purchase a new rental property. The OP is asking about taking out a HELOC on an existing rental property to purchase another new rental property. In that example, the interest on the HELOC would be deductible (on Schedule E) against the newly acquired rental property because it's a business expense for that new rental.

@Steve Weinstein  To answer your original question, PenFed and Wells Fargo are just a couple of the lenders that will do HELOCs on rental properties. You should call around to find one that will work best for you. 

Lastly, here’s some things to consider and questions you can ask when calling around and talking to different lenders: 

What You Need to Know When Shopping for a HELOC