Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
6y
That's a pretty good rate for a HELOC, @Dennis Nikolaev. Out of curiosity, why not liquidate the condos and 1031 into a MFR? You'll mitigate the inherent risk of condos, consolidate your holdings, and see efficiencies of scale. $1.2MM will get you into a $4+MM MFR with little difficulty.
Did you think about a refi versus HELOC? I recognize you indicate that you do not have immediate plans for the money but you are in a high appreciation market. The appreciation is magnified with leverage. If you took the money out via refi and invested in something of passive, liquid, moderate return (such as S&P 500: Lifetime just over 9%) you would still experience the same RE appreciation and you would have the gain resulting from having the investment in something (I used SP500 as an example) else that appreciates. Your cash flow would decrease (due to higher LTV) but the decrease would be less than the historical appreciation of the S&P 500 (or other such investment).
When you wanted to access the money it would be available (because I had liquid as one of the qualifiers).
BTW I looked into HELOC on investment RE a few years ago and agree that there were not a lot of places offering it.
I suspect you have done more recent research than anyone else on this site.
Rental Property Investor · Greenwich, CT · Member since 2015 · 4k+ posts · 2k+ votes
6y
@Kenneth Donaghy, Pen Fed CU and Figure both do them. Up to 80% LTV, I think. Another BP member had compiled a longer list (some state specific), but I can't seem to find right now.