Hello all, I have been reading BP for a while and there is so much good information in these forums. Here is the obstacle I currently face. My partner and I own a duplex in Chattanooga TN free and clear, I do not occupy the residence, and have done a good amount of work to the property. We bought this place for $26k. Does anyone know of any lending institutions that would do a HELOC or other loans so I can pull out some equity and buy another rental? Thank you for any help you can offer.
It's really hard to get HELOC's right now for a non-owner occupied duplex. Cash-out refi may be a better option. Then again, depending on the loan amount, that may be hard as well.
Go to your local bank or credit union and do a cash-out refinance. Ask them about a blanket mortgage while you are there.
The 1031 Exchange would be an option. You could sell your existing duplex and trade into a larger replacement property (or buy 2 or more replacement properties). Keep in mind that your intent to hold for rental or investment purposes is critical. If you just completed the rehab work and have not started to rent yet, it might look like you really had the intent to hold for sale (i.e., rehab then flip) as opposed to investment (rental). It is all about intent, which can be tricky to prove with a short-term hold.
Guys thank you for all the great suggestions. I have been in contact with local banks working on a cash out refi which I think is what I want to do. Again, thank you for you help.
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