I just closed on a triplex. I bought with 25% down conventional mortgage. I was lucky to have a motivated seller and hence slightly good price. The bank appraisal came with $20k over sell price.
I also plan on doing some rehab which should add another $20k in value. Is there a way I can tap into this additional ~40k equity. What I learned after talking to my lender is that almost all banks don't do HELOC on investment property. Is cash-out refi an option? Is there a wait period for that? Are there other creative options?
I really want to tap into this equity so I can go for the next deal. Thanks in advance.
If you have equity there is always a way to get that equity out in cash. Traditional banks will work with you, you just need to network with them and talk to the correct people. I would also look into small region or local banks and talk to them, often they have other loans that you can get that uses the equity as collateral.
Bottom line: talk to everyone and you will find a myriad of ways to get that equity out as cash in your hands.