Home equity line of credit on rental

3 Replies

Hey everyone. Looking for advice regarding utilizing a HELOC on a rental property in NJ. Pro's, cons? Does anyone have personal experience utilizing a HELOC from a rental for a future purchase and/or rehab project. Thanks

@Joseph Guzzardi Jr I know I am splitting hairs here but you can't get a HELOC on a rental property. HELOC stands for HOME Equity Line of Credit. A rental is not your home.

You can get lines of credit on rental properties, but asking for a HELOC may get you the wrong answer. Even if the bank makes these loans, the term HELOC may confuse the banker. One bank I dealt with called it a BEL, Business Equity Line.

Generally you will get better response from smaller local banks vs the big national banks. 

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