Problems getting Line of Credit from rental property

[Serdar Umur]

Hello there,

I am new in real estate investing. We have a property in Chicago with 200K equity in it. It was evaluated by an certified appraiser. It is more than 50% of the house's total value.

I am trying to get a line of credit up to 100K to invest in a multi-unit house. I just want to have the line of credit available so when I find the property, I can just go and pull the money out.

That unit is our second property now, we live in in Connecticut. We will be investing in Fairfield county in CT, in Norwalk and surrounding area.

I went to our mortgage broker that found us the initial mortgage in the unit to ask for the line of credit and he told us, he checked with 3 of his lenders and none-of-them really wants to open a line of credit for us because it is not our primary unit. 

I have been studying real estate for a while now and I thought there was a whole strategy around getting a second loan on your rental properties to keep investing but I am having a hard time to get this second loan on this second house.

Can anybody help me? Do you know lenders in Chicago or licensed in Illinois that would be okay with lending to a second property? 

If you are a lender, please feel free to contact me as well.

Thank you for everybody's help.

Take care!

[Charlie Fitzgerald]

Do a cashout refinance on the rental unit.  Better rates, easier process.