Tapping Equity in 2 Duplexes
Looking for some advice on the following: I'd like to pull the equity out of both of these properties.
Identical Duplexes: 3/2 stacked. Value $600k each. Bought in 2018/2019. Both with 30 Year Fixed loans. Total Equity is about $700k as I owe about $250k on each one. Rent is $3325 on one and $3900 on the other. My equity-based rate of return is not great because of the appreciation in the last 5 years. I've cost segged both of the properties so selling in a down market would be a tax hit and I'm not sure if they would sell. I've talked to my local credit unit about HELOC's but they are struggling to get comfortable because of the complexity of my tax returns and the paper losses (I have REPS).
Any idea's on options? Do I do a cash out refi with a DSCR? Do I just sell them? Find someone else to do the HELOC?
Any thoughts would be appreciated.
Bryce
Most Popular Reply
Yeah man DSCR cash out sounds like it would be helpful for you. Credit unions are strong on terms but typically need A LOT of information to get comfortable with borrowers.
You could also do a DSCR portfolio loan if you are planning to keep them both long term. It would save you some on fees if you did it that way. I just helped a borrower do a DSCR portfolio purchase in Cleveland.
If you are not looking to hold long term it would be better to do them individually.