Kansas City, MO · Member since 2018 · 21 posts · 5 votes
Hey everyone! So I own a small commercial apartment building that's 5 units. I was wondering if I could use this property to get a HELOC and use that money to buy and flip single family homes. My question is, are there rules, regulations, qualifications or RESTRICTIONS on using a line of credit on a commercial property to purchase other properties?
Investor · Chattanooga, TN · Member since 2016 · 676 posts · 543 votes
8y
HELOC stands for Home Equity Line of Credit. So it is not possible to get one on non residential property. That being said it is possible to get a line of credit against provided there is sufficient equity. These lines require the involvement of a commercial lender but can make sense.