Cash Out Refi or HELOC on Investment Property

Cash Out Refi or HELOC on Investment Property

Rental Property Investor · Braintree, VT · Member since 2013 · 35 posts · 13 votes

Hi - about a year and a half ago I got a cash out refi on an investment property, went well with a local bank. I just reached out now and options are very limited on an investment for either cash out or HELOC. I have found a cash out option with 75% loan to value with about 5.25% interest. What have others been doing? I'm leaning towards a HELOC now but haven't found a bank offering them on investment properties. Mainly looking for best way to access the equity we've built into that property to keep moving forward. Thanks!

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  • Rental Property Investor · Los Angeles, CA · Member since 2021 · 8 posts · 1 vote
    4y

    Even though rates have gone up, that seems like a very high interest rate. In January, I was able to do the same thing at 3% with my bank. I would consider reaching out to a good mortgage broker to see what other offers are out there. But it totally depends what you plan on doing with the money! If this allows you to purchase another property and this one will still cashflow, it could work out in the long run. If you're using it to perform a flip, HELOC could work.

  • Kerry BairdPro Member
    Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
    4y
    Penfed is great for investment HELOCs if you have fewer than 4 properties. TD Bank, US Bank will also do them, as will Trustco Bank.  From there, talk to local (to the property) credit unions.
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