HELOC for an Investment Property in Central FL
Hey BP! I own an investment condo here in Orlando, FL under my personal name and I'm looking to get a HELOC to access that equity to invest in my real estate business. It's owned free and clear. My current income is only from my real estate business and I opened my LLC back in August 2021 so it's around 1.5 years old. I had a W-2 income coming in for many years but I quit in May 2022.
What would be my options to possibly get a HELOC on my investment property?
@Jose Vasquez Dickson - if you own it free/clear, you should cash-out refi for max leverage. There are many options for the type of loan that would be a good fit. Reach out for more info....
A heloc won't cost you much and you can still get 75% of your equity out. I recommend TD bank. If you open an account with them they give you a great rate. Currently at 5.99%
Quote from @Jose Vasquez Dickson:
Hey BP! I own an investment condo here in Orlando, FL under my personal name and I'm looking to get a HELOC to access that equity to invest in my real estate business. It's owned free and clear. My current income is only from my real estate business and I opened my LLC back in August 2021 so it's around 1.5 years old. I had a W-2 income coming in for many years but I quit in May 2022.
What would be my options to possibly get a HELOC on my investment property?
The issue you are going to have is with your income. If you only opened your real estate business in August of 2021, that is not long enough to use that income to qualify. Was your W2 job also in real estate (same line of work). I will shoot you a PM.
Quote from @Matthew Wolk:
Quote from @Jose Vasquez Dickson:
Hey BP! I own an investment condo here in Orlando, FL under my personal name and I'm looking to get a HELOC to access that equity to invest in my real estate business. It's owned free and clear. My current income is only from my real estate business and I opened my LLC back in August 2021 so it's around 1.5 years old. I had a W-2 income coming in for many years but I quit in May 2022.
What would be my options to possibly get a HELOC on my investment property?
The issue you are going to have is with your income. If you only opened your real estate business in August of 2021, that is not long enough to use that income to qualify. Was your W2 job also in real estate (same line of work). I will shoot you a PM.
With that being said, it sounds like you are a great candidate for a DSCR cash out refi. If you truly want to get money out, this seems to be your only way. Unless you want to wait a full 2 years for your real estate company to mature and then you could use income from that.
Quote from @Jose Vasquez Dickson:
Hey BP! I own an investment condo here in Orlando, FL under my personal name and I'm looking to get a HELOC to access that equity to invest in my real estate business. It's owned free and clear. My current income is only from my real estate business and I opened my LLC back in August 2021 so it's around 1.5 years old. I had a W-2 income coming in for many years but I quit in May 2022.
What would be my options to possibly get a HELOC on my investment property?
Jose,
You cannot do helocs on investment properties - you can do HELOANs. However, most banks that allowed HELOANS on investments wont do it id they are not in second lien position (odd in of itself, i know). So with that being said, if the unit is occupied the best bet to access cash and avoid Fannie/freddie is DSCR cashout.
Jose,
I would promote you to think out of the box. My business LOC has great flexibility with next to no limitations. Please feel free to PM for details.
Steve
There are still programs out there that can do HELOCs on investment properties. However a lot of them have limitations if the property type is a condo. Call around -- you can find one!
- 262.955.5168
- https://barrettfinancial.com/lzwirlein
- [email protected]
Quote from @Simmy Ahluwalia:
@Jose Vasquez Dickson - if you own it free/clear, you should cash-out refi for max leverage. There are many options for the type of loan that would be a good fit. Reach out for more info....
Yeah doing a cashout refi is my backup plan if I can't do a HELOC
Quote from @John McKee:
A heloc won't cost you much and you can still get 75% of your equity out. I recommend TD bank. If you open an account with them they give you a great rate. Currently at 5.99%
I tried doing it with TD Bank a couple of days ago but they mentioned that need at least 2 years of bank statements from my LLC but I opened my LLC only 1.5 years ago.
Quote from @Matthew Wolk:I'm still looking with other lenders to see if I can do a HELOC before doing the DSCR cash out refi. However, yes I noticed that my LLC been less than 2 years will be an issue.
Quote from @Matthew Wolk:
Quote from @Jose Vasquez Dickson:
Hey BP! I own an investment condo here in Orlando, FL under my personal name and I'm looking to get a HELOC to access that equity to invest in my real estate business. It's owned free and clear. My current income is only from my real estate business and I opened my LLC back in August 2021 so it's around 1.5 years old. I had a W-2 income coming in for many years but I quit in May 2022.
What would be my options to possibly get a HELOC on my investment property?
The issue you are going to have is with your income. If you only opened your real estate business in August of 2021, that is not long enough to use that income to qualify. Was your W2 job also in real estate (same line of work). I will shoot you a PM.
With that being said, it sounds like you are a great candidate for a DSCR cash out refi. If you truly want to get money out, this seems to be your only way. Unless you want to wait a full 2 years for your real estate company to mature and then you could use income from that.
Quote from @Lyndsay Zwirlein:
There are still programs out there that can do HELOCs on investment properties. However a lot of them have limitations if the property type is a condo. Call around -- you can find one!
Yes, I'm still looking! Thank you!
Jose, I'm in Orlando as well, I'd be happy to run through any options with you. If you do go the DSCR route, just make sure you know whether or not your condo is warrantable or non-warrantable, as that plays a factor in the rate and eligibility of the asset for DSCR financing. Many DSCR lenders won't lend upon a non-warrantable condo, or the rate is increased by .500% at the least.
