I have a rental property that I own free and clear. I'd like to get a HELOC on it and use some of the funds for down payments on one or more properties. I'll be using a conventional loan for the purchases. My understanding is that I'm just paying interest on the funds I use from the HELOC and will pay it down through cash flow from the properties. Can I refinance at some point to roll the HELOC into a conventional loan to pay off the HELOC?
Steve - most heloc lenders will not provide HELOCS on rental properties ....there may be a few out there doing so ......getting a traditional cash back refinance on the rental property should be easier to do ...most lenders will go to 60-75% ltv for cash out refinances on rental SFR
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