Options for pulling equity out of rental property for purchase

San Antonio, Texas
Private Lending & Conventional Mortgage Advice
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Options for pulling equity out of rental property for purchase

Anthony Alexander
Detroit, MI · Member since 2017 · 11 posts · 3 votes

I just got wind of a 4 unit property that hasn't hit the market yet. I don't have the cash required, so I'd have to finance. I'm looking at what options I have to pull equity out of other rental properties I have.

Does anyone know of investor-friendly lenders that service the San Antonio / South Texas area and will allow home equity loans or HELOCs on rental properties? I'd rather not do an entire cash-out refi because I have a much better rate on the property than I could get today.

With a 70% LTV planning factor, I'd still have plenty of room for the cash I'm looking for to make the down payment (~125k).

Thanks for any help/advice!

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Jacob Sherman
12 Penns Trail Suite 138 Newtown, PA 18940 · Member since 2023 · 1k+ posts · 319 votes
2y

Helocs are tough to get on investment properties but can look into cashout refinance options on your investment properties upto 80% 

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  • Brandon Croucier
    Lender · Nashville, TN · Member since 2024 · 700 posts · 284 votes
    2y

    Hi Anthony, I can service a investment property heloc however it might not be the best solution. Rates on these investment heloc's are 12-15% right now... You might just be better off doing a cash out refinance.

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    2y
    Quote from @Anthony Alexander:

    I just got wind of a 4 unit property that hasn't hit the market yet. I don't have the cash required, so I'd have to finance. I'm looking at what options I have to pull equity out of other rental properties I have.

    Does anyone know of investor-friendly lenders that service the San Antonio / South Texas area and will allow home equity loans or HELOCs on rental properties? I'd rather not do an entire cash-out refi because I have a much better rate on the property than I could get today.

    With a 70% LTV planning factor, I'd still have plenty of room for the cash I'm looking for to make the down payment (~125k).

    Thanks for any help/advice!


    You may be able to do a stand alone DSCR based second mortgage. Lenders will factor both the 1st and 2nd mortgage payment to calculate the DSCR. Rates will be in the high 11s-12.5% Range

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Jacob Sherman
    12 Penns Trail Suite 138 Newtown, PA 18940 · Member since 2023 · 1k+ posts · 319 votes
    2y

    Helocs are tough to get on investment properties but can look into cashout refinance options on your investment properties upto 80% 

    1Reply
  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    2y

    @Anthony Alexander,  I might be able to share some lending resources with you in the area that can assist you with your scenario. Feel free to reach out. Happy to share some knowledge. 

    [email protected]619-456-8311
    Helm Mortgage Corp.5125 Reviews
    WebsiteView Page
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