Rental Property Investor · Columbia, MO · Member since 2015 · 22 posts · 5 votes
I have over $100k in equity in a rental property...I am unable to use it because of fees associated with HELOC and refinancing. How do I get past this? Do I have to use a hard money lender?
Real Estate Agent · Colorado Springs, CO · Member since 2017 · 224 posts · 201 votes
7y
@Zachary Wiederstein I’m in the Springs as well. Most lenders won’t do a Heloc on an investment although I’m sure there is someone out there who would - I just haven’t found one. Talk with Rich Dillman at Caliber I’m Briargate. He can help with cash out refinancing.
Investor · Ocala, FL · Member since 2018 · 144 posts · 101 votes
7y
Yeah, cash out refi is the only traditional option I'm aware of unless you have a portfolio of about 3 or more properties. Once you have a portfolio of properties you can bundle the equity into a commercial LOC that's based more on your balance sheet than individual lines. That's what I have. Commercial terms are not as attractive as residential, and it does come with annual fees, but it's a good option.
What is the value of the property? With conventional, for a single family rental property you can get an LTV up to 75% with a cash out refinance and up to 70% LTV with a multi-family rental.