Home equity loan....

Private Lending & Conventional Mortgage Advice
1yFollow

Home equity loan....

Yakir AloniPro Member
Member since 2023 · 51 posts · 19 votes

Hello can you pls recommend me a lender that do heloc i have investment property now that rent it cash flow around $400 and i have 150k mortgage on it now and the house worth 227k I want to use this equity and but with the brrrr method like I did with this property... ty  credit score 680

1Reply
250 views

6 Replies

Jump to latestLatest
  • Jackie Carmichael
    Lender · Hinton, WV · Member since 2025 · 128 posts · 53 votes
    1y

    Yakir — solid work pulling off your first BRRRR, that’s how you build momentum.

    Here’s what you’re running into: most banks are tightening up on HELOCs/seconds against investment properties. They’ll happily do it on your primary, but investor properties are harder, and when they do, the rates are often high.

    What a lot of BRRRR investors are doing instead is:

    • Cash-out refi: replace the current loan with a new one at 70–75% LTV. That lets you pull equity while keeping everything in one note.
    • DSCR or investor rental loan: approval is based on the property’s cash flow rather than just your W-2.
    • Bridge-to-rental: use a short-term loan to access max leverage quickly, then refinance into a DSCR once the property is stabilized.

    With your numbers ($227k value, $150k loan balance, ~66% LTV, 680 credit), you’re in range to tap equity — it’s just about structuring it right. At Summit Partner Lending, we work with investors on exactly this type of scenario, lining up either a cash-out refi or bridge that can free up equity for your next BRRRR.

    Question for you: are you looking to keep your monthly payment as low as possible, or is the main priority just maximizing cash-out to roll into the next deal?

    0Reply
    • Yakir AloniPro Member
      OP
      Member since 2023 · 51 posts · 19 votes
      1y
      Quote from @Jackie Carmichael:

      Yakir — solid work pulling off your first BRRRR, that's how you build momentum.

      Here’s what you’re running into: most banks are tightening up on HELOCs/seconds against investment properties. They’ll happily do it on your primary, but investor properties are harder, and when they do, the rates are often high.

      What a lot of BRRRR investors are doing instead is:

      • Cash-out refi: replace the current loan with a new one at 70–75% LTV. That lets you pull equity while keeping everything in one note.
      • DSCR or investor rental loan: approval is based on the property's cash flow rather than just your W-2.
      • Bridge-to-rental: use a short-term loan to access max leverage quickly, then refinance into a DSCR once the property is stabilized.

      With your numbers ($227k value, $150k loan balance, ~66% LTV, 680 credit), you're in range to tap equity — it's just about structuring it right. At Summit Partner Lending, we work with investors on exactly this type of scenario, lining up either a cash-out refi or bridge that can free up equity for your next BRRRR.

      Question for you: are you looking to keep your monthly payment as low as possible, or is the main priority just maximizing cash-out to roll into the next deal?

      Next deal...
      Ty for your answer...

      i am familiar with this for prime home they give me to do heloc with no problem up to 80% 90% but for investment I will have less lender or bank that do it and I know up to 75% 

      do you know some lenders that give this home equity loan so I can use it anytime and I need to pay just for what I'm using...
      0Reply
  • Elias HalvorsonBusiness Member
    HI · Member since 2024 · 225 posts · 130 votes
    1y

    Yakir, 

    You can do a cashout refinance but the fees will likely eat up a lot of the $ you would be getting out. I would for this I would recommend getting a personal loan. Youll get higher rates, but more $$$$ and a lot less fees. SOFI gives up to 100K personal loans and you might only pay 200-300$ in document fees. 

    808-517-6416
    Elias Halvorson C2 Hawaii NMLS#1697041HI Branch NMLS#1244222 585 Reviews
    WebsiteView Page
    0Reply
  • Derek BrickleyBusiness Member
    Lender · Ann Arbor, MI · Member since 2021 · 664 posts · 226 votes
    1y

    Hey Yakir!

    Yes pretty common all around to do a HELOC on an investment property up to 70% of the value of the property but that will be the biggest hurdle since the property only has about 34% equity now. I'd second what others have said in this case, the little bit of equity you could pull out likely wouldn't be advantageous. Even on a full cashout refinance you're generally limited to 75% of the value (about $20k more than what you currently owe). If it's helpful to look at something like that though feel free to reach out.

    [email protected]734-645-7722
    Gold Star Mortgage Financial Group548 Reviews
    WebsiteView Page
    0Reply
  • Vandana Thapa
    Lender · 10220 SW Greenburg Rd Portland OR United States, OR · Member since 2025 · 16 posts · 8 votes
    1y

    @Yakir Aloni You've got solid equity in your rental, but most banks don't offer HELOCs on investment properties. Investor-focused lenders and private money sources do, though, especially for borrowers using strategies like BRRRR. With a 680 credit score, you'll likely be capped a bit lower on LTV, but it's still workable.
    What to expect:
    - Max LTV on rental HELOCs: usually 70–75%
    - Your equity: about $77K, so $9K–$20K could be accessible
    - Credit score: 680 works, but stronger terms usually start at 700+
    - Alternatives: DSCR cash-out refinance if HELOC options are tight
    You can tap into your equity, but you’ll want to target investor-focused lenders or specialty DSCR products instead of traditional banks. 

    This response is for educational purposes only and not intended as financial, tax, or legal advice. Always consult your own advisors before making investment decisions.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free