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.
@Ned Carey thanks for your feedback. Your correct. My mistake.
@Joseph Guzzardi Jr it is not really your mistake. It is amazing how you can go into a bank and ask something and they can't make the connection from what you want and what they provide.