Rental Property HELOC Success

General Real Estate Investing
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Rental Property HELOC Success

Tyren Robinson
Investor · San Antonio, TX · Member since 2019 · 31 posts · 14 votes

After a long and frustrating process, I finally secured a lender willing to approve a HELOC on my rental property.

I spent months reaching out to banks and posting in forums, coming up empty each time. It got to the point where I questioned whether the strategies I was learning were truly viable in practice. At one stage, I even caught myself shifting into a negative mindset—thinking that what works in theory doesn’t always translate in reality.

My initial conversation with the loan originator wasn’t perfect—I had miscalculated my available equity and expected to be turned away. But I stayed the course, worked through the process, and ultimately gained access to capital to support future investments.

Sharing this for anyone who may be hitting similar roadblocks—persistence matters, and the right opportunity can come together when you least expect it.

If you’re navigating this space and need direction, feel free to connect. I’m happy to share insights and potentially point you toward a strong lending contact.

Stay A.G.I.L.E. and Let's GrOw!!!

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  • Samuel Awosolu
    Lender · Florida / Georgia · Member since 2025 · 58 posts · 28 votes
    7mo

    Hey Tyren,

    Really appreciate you sharing this. HELOCs on rentals have become one of the most challenging parts of the lending landscape, so hearing real experiences helps a lot of investors who are running into the same issues.

    If you’re open to sharing a bit more about your process, I’d love to learn from what you ran into:

    • * What terms did you end up getting on the HELOC? ( Ok if you don't want to share this )
    • * Were you able to close it in your LLC, or did the lender require it in your personal name?
    • * What LTV did they allow on the property?
    • * Was it structured as a true HELOC with a draw period, or more of a fixed‑term HELOAN?
    • * Any hiccups or surprises during underwriting that other investors should be aware of?

    I ask because I originate HELOCs for rental property investors, and I’m constantly comparing lender guidelines to see where the gaps are and how to match investors with the right fit. Real‑world experiences like yours help me understand where people are getting stuck so I can source better options.

    Thanks again for sharing your win. Persistence really does pay off in this space.

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    • Tyren Robinson
      OP
      Investor · San Antonio, TX · Member since 2019 · 31 posts · 14 votes
      7mo

      @Samuel Awosolu thanks for your comment and I apologize for the delayed response. I am currently traveling, but when I return home I will provide all the details 👍🏾

      1Reply
    • Tyren Robinson
      OP
      Investor · San Antonio, TX · Member since 2019 · 31 posts · 14 votes
      7mo
      Quote from @Samuel Awosolu:

      Hey Tyren,

      Really appreciate you sharing this. HELOCs on rentals have become one of the most challenging parts of the lending landscape, so hearing real experiences helps a lot of investors who are running into the same issues.

      If you’re open to sharing a bit more about your process, I’d love to learn from what you ran into:

      • * What terms did you end up getting on the HELOC? ( Ok if you don't want to share this )
      • * Were you able to close it in your LLC, or did the lender require it in your personal name?
      • * What LTV did they allow on the property?
      • * Was it structured as a true HELOC with a draw period, or more of a fixed‑term HELOAN?
      • * Any hiccups or surprises during underwriting that other investors should be aware of?

      I ask because I originate HELOCs for rental property investors, and I’m constantly comparing lender guidelines to see where the gaps are and how to match investors with the right fit. Real‑world experiences like yours help me understand where people are getting stuck so I can source better options.

      Thanks again for sharing your win. Persistence really does pay off in this space.


       Samuel, I finally returned home and able to provide the details you requested. Please read below:

      • * What terms did you end up getting on the HELOC?
      • HELOC capped at 80% CLTV, 15 yr term w/ 5 year draw, interest only payments during draw, variable rate currently at 11.875%, line amount $54K on $405K property, $2.8K closing costs. It's conservative but gives me access to capital for EMD, deal control, etc. and I can pair with other funding
      • * Were you able to close it in your LLC, or did the lender require it in your personal name? I didn't seek or ask to close in my LLC, because the property is in my personal name. I am under the impression you can close based on ownership of property.
      • * What LTV did they allow on the property? 13.012%
      • * Was it structured as a true HELOC with a draw period, or more of a fixed‑term HELOAN? Structured as a true HELOC. The loan originator tried to funnel me into a HELOAN until I explained my strategy and expectations of not having an initial draw and zero balance after closing. However, the interest rate went up two percentage points because of my desire.
      • * Any hiccups or surprises during underwriting that other investors should be aware of? No hiccups or surprises. I was leery thinking there were going to be surprises at closing that were different from previous correspondence.

      I hope this helps. Please provide feedback and constructive criticism so in the future I have more context to better position myself.

      1Reply
  • Samuel Awosolu
    Lender · Florida / Georgia · Member since 2025 · 58 posts · 28 votes
    7mo

    Hey Tyren,

    Thanks for sharing the full breakdown. Honestly this is actually a really clean execution of an investor HELOC strategy.

    Your terms are pretty straightforward.
    Your structure aligns with what I’m seeing across the market:

    80% CLTV cap

    5‑year draw / 15‑year amortization

    Interest‑only during draw

    Variable rate in the 11–12% range

    $2.5K–$3.5K closing costs

    Nothing here is out of line. If anything, your closing costs are on the lower end.

    The fact that you had no surprises tells me your profile is strong and your documentation was clean.

    Overall I believe you executed this well.

    We do close HELOCs in LLCs however they are still personally guaranteed. 

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