HELOC on investment property

[Tyler Hall]

Hey y'all! Looking for some advice. I recently moved due to military orders. I am turning my previous property into my first rental property. I need to replace the roof so I was looking at taking out a HELOC in order to tap into my equity to finance it. The issue I'm running into is that most banks won't give out a HELOC on an investment property. I currently don't live in the property but I do not have a tenant yet. (Should have one 1 Sep). I am looking at some advice with this one either a lending that does investment property HELOCs or a creative way to get around this. I have an excellence credit score, ton of available equity and the property is going to cash flow beautifully. I have been talking with one lender who wants to do an equity loan but to me, I would love to have a HELOC just in case other renovations pop up. I want to be able to tap into that equity for renovations or funding for other properties. Thanks in advance!

-Tyler

[Alexis Sostre]

Do it now as a primary residence HELOC before you get a tenant. Some lenders will let you apply while it’s still “your residence” on paper, especially if you just moved and your driver’s license / mailing address hasn’t changed yet. Once the HELOC is in place, you can keep it even after renting the property. As a backup, use an interest-only equity loan for the roof now, then refinance into a HELOC later once you’ve built a track record as a landlord.