Pull Cash out of Fully Paid Property, Jax, FL

8 Replies

I need some ideas, thoughts and recommendations on pulling money out of a property. I haven't been able to find a lendor in my area that will lend on HELOC on the property. I would like to pull money out of a fully rented property and use the cash for new opportunities. Anyone have ideas or leads. Property value is around $110k, looking to pull out less than 80% of that value. I have good credit. I have an existing mortgage on my primary residence.

Give me your thoughts.

As long as you find good terms I don’t see it as a bad plan.  In my opinion you shouldn’t aim to pay off mortgages of your rentals if your goal is cash flow.  That equity can be moved to other investments.

Originally posted by @Benjamin Small :

I need some ideas, thoughts and recommendations on pulling money out of a property. I haven't been able to find a lendor in my area that will lend on HELOC on the property. I would like to pull money out of a fully rented property and use the cash for new opportunities. Anyone have ideas or leads. Property value is around $110k, looking to pull out less than 80% of that value. I have good credit. I have an existing mortgage on my primary residence.

Give me your thoughts.

Why can't you get a HELOC? What's the reason they are telling you?

@stephanie potter I was told they aren't doing loans on investment properties.

@stephanie irto that is a good point. Thanks. 

Updated over 2 years ago

@stephanie potter @stephanie irto

@Benjamin Small I'd recommend to keep checking with small, local banks and credit unions, which tend to be much more flexible with real estate investors.  The local banks in my town will most certainly provide a secured loan against the equity in an investment property (aka heloc), providing the equity level meets their criteria.  So I'm not sure why you're being told no.

Cash-out refi is certainly an option (I did that on one of my rentals last year), but you lock yourself into current rates for 30 years or until you refi again or sell.  And there are refi fees.  So I'd recommend to keep looking around.

Best of luck to you!

Chris

I'd say keep shopping around. You should be able to find one. Its a pretty common practice. 

Also I would say to not do any HELOC or cash out for more than ~50%. But thats just a personal opinion. I'm not one to max out my leverage with debt.