How to use Equity on an investment property

Question

Hi,

I had inherited an investment property that is worth quite a bit and is fully paid off. I am looking for ways to leverage the property's equity to purchase my next rental property. I had checked with most of my local banks, big banks, and credit unions and they seem to all say that they only offer HELOC to primary residents. Are there suggestions on what I should look into to pull equity out of that property?

Thanks.

Chris Seveney · Answer

@Andy L.

You could get an investment loan or private money loans against that other asset. The issue is it will be short term so what are you gonna do to pay it off.

Jay Hurst · Answer

Andy,

When you say you want to leverage the equity buy your next rental property are you saying you have enough equity to buy the new house with cash? or, are just looking for enough equity for the down payment?

Ko Kashiwagi · Answer

Hi Andy,

Yes, most lenders will only do line of credit for primary residences. A common strategy here is to access the equity through a cash-out refinance or selling.

How to use Equity on an investment property

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