I Have A Rental Property I Need to Refi/Get Money From
So...kinda stuck.
Was laid off from my job about a year ago. Have been plowing most of my savings into a startup since then and they're running low and spending my hours on the business vs looking for another full time gig. I have two 4-plex rental properties with a large amount of equity (one with nearly $500K and a 40% LTV, the other with about half of that). I want to find a way to pull cash ($200K) out of the rental property and invest in the business to get me over the hump (which is between now and March of 2016).
Issues:
-conventional mortgage or HELOC aren't going to fly (aka I wouldn't be approved for them), as I've had zero income for the past year
-savings are depleted from biz capital expenditures: had a huge setback in April that tore through a lot of it, but I'm finally coming out of the nosedive in the last month and am on track to have the fist breakeven month of the company this December. Based on conservative forecasts, I'm able to start paying down my debt by March 2016.
-credit is still OK, in the 720s...I've taken out credit card debt with high balances, but I've been making the minimum payments and keeping them in good standing...I would use a chunk of the $200K mentioned above to pay them off
The options as I see them are:
1) Sell the property, do a 1031 exchange for the bulk of the value, and take the cash I need from the proceeds
2) Get a hard money loan against the equity (never done that before, but it sounds scary) and pay it back ASAFP
Let me be CLEAR: I am NOT soliciting for a specific type of loan or lender or anything that would violate the TOS, I'm just seeing if anyone knows what TYPE or CATEGORY of loan product might address the issue.
What else...? Seems weird that I have this valuable asset that I can't monetize, but I've not heard of a no-doc ('cause no paychecks) Home Equity Loan. Any advice?