Anyone recently taken out a HEL on investment property?
I have got a duplex with a good amount of equity in it, and I'm rehabbing a live-in fix and flip/rent. I'd prefer the home equity loan and let my tenants pay for it (it would still cashflow), and I'd use some of the cash to pay off my rehab (currently on credit cards at 0%). The rest can towards the next property.
Although I've seen some forum posts about this being possible, I haven't seen anyone report getting a HEL on an investment property.
I haven't found a local lender (or even a national lender) who will do anything other than a commercial line of credit with an investment property, or they tell me to do a cash-out refinance.
Hi @Rik Hunter, there are plenty of lenders out there that can do HELOANs on investment properties.
I would typically be able to refer you to a lender that can help but Tennessee has some abnormal rules and regulations regarding second liens.
Therefore, even for a national lender that is licensed in TN, they may not be able to do anything in the state.
Sorry I could not be of more assistance. Hopefully, someone else has a contact in TN that can help you.
Hey Rik - Commenting here and upvoting for visibility - I am running into the same thing - trying to access 300k equity in a property. Talked to 10+ banks and no one is doing investment property helocs right now. Only primary and second homes.
@Andrew Garcia, thanks! I'll look into the TN situation. I had no idea. Locally, it's only been primary and second homes.
@Dominic Santini, that's what I'm finding, too. On facebook/real estate rookie someone said to check with PenFed.