Here's my situation, looking for input on the right move.
I took out 2 heloc loans on 2 investment properties for the down payments of two other properties earlier this year. The heloc payments are 1% of the balance a month, so around $650 a month. I have enough equity in the two properties that I borrowed on to cash out refi and pay off the helocs, which would save me around $425-440 or so a month over making the HELOC loan payments. I assume it wouldn't make sense to continue making the HELOC payments over the long game due to the minimum monthly payments.
Just wondering what others might do in this situation. I'd be looking at next year to cash out refi if that makes sense to do for the long game.
Ask the bank if they will merge the HELOCs and replace the mortgages by turning those HELOCs into a single, first-position, lien. Mortgages are the biggest money loser in the industry. If you use the HELOC like a bank account, putting all your money into it, you'll snowball debt at an exceptionally fast rate. Then when a deal comes along that you want to buy, you'll have cash to purchase it without getting loan approval meaning you can offer less cash, have your offer accepted faster, and spend less time waiting to take possession of the house, moving renters in quicker.
If the bank had it's way it would keep you always paying 30-year mortgages, but since you understand a HELOC, take advantage of the product to increase the speed of your wealth-building. Best of luck!
You could do a cash out refinance of the duplex's to combine the 1st & HELOC's into a new 1st. Or you can replace the HELOC with a new HELOC that just charges interest only at a rate of 4-5% so a much lower monthly payment yet you still have your HELOC to use when needed for future investments. I suggest Quorum FCU to replace your HELOC with their HELOC. They are the best lender for rental property HELOC's.
I hope this helps?