Leveraging HELOCs for multiple rental properties

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Leveraging HELOCs for multiple rental properties

David Zimmer
Tallahassee, FL · Member since 2017 · 46 posts · 8 votes

This is a pretty newbie question so forgive me if I failed to find the answer already. I am closing on my first HELOC and starting the search process for an investment property. I'm thinking for the future when I want to purchase a 2nd and 3rd investment property. Can you take out another HELOC on that investment property in order to purchase another? Aside from finding private investors, how can you keep rolling into more properties without having the cash on hand?

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Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votes
4y
Quote from @David Zimmer:

This is a pretty newbie question so forgive me if I failed to find the answer already. I am closing on my first HELOC and starting the search process for an investment property. I'm thinking for the future when I want to purchase a 2nd and 3rd investment property. Can you take out another HELOC on that investment property in order to purchase another? Aside from finding private investors, how can you keep rolling into more properties without having the cash on hand?


A lot of investors have been asking this very same question. Unfortunately I have not seen any lender offer a HELOC for an investment property. Even getting cash out is tighter than ever, with most offering only up to 75% LTV.

[email protected]818-269-7983
LuxePrivate Investments LLC 572 Reviews
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  • Trevor Alexander
    Lender · Corvallis, OR · Member since 2021 · 93 posts · 54 votes
    4y

    Hi David -

    Conventional Lenders will probably only allow a 1st and 2nd mortgage per property.

    Cash-out Refi's are another way to tap into the equity. Pays off the first mortgage and you can borrower up to 80% LTV.

    Hope that helps. Let me know if I can help with anything else.

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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    4y
    Quote from @David Zimmer:

    This is a pretty newbie question so forgive me if I failed to find the answer already. I am closing on my first HELOC and starting the search process for an investment property. I'm thinking for the future when I want to purchase a 2nd and 3rd investment property. Can you take out another HELOC on that investment property in order to purchase another? Aside from finding private investors, how can you keep rolling into more properties without having the cash on hand?


    A lot of investors have been asking this very same question. Unfortunately I have not seen any lender offer a HELOC for an investment property. Even getting cash out is tighter than ever, with most offering only up to 75% LTV.

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    1Reply
  • David Zimmer
    OP
    Tallahassee, FL · Member since 2017 · 46 posts · 8 votes
    4y

    Thanks for the replies. It sounds like a "rolling" HELOC is just not a thing. If an investor has already leveraged his home's equity, are there other loan products available to make the down payment on additional investment properties? Aside from just saving cash and bringing in other investors.

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  • Sergey A. Petrov
    Real Estate Consultant · Seattle, WA · Member since 2022 · 1k+ posts · 784 votes
    4y

    @David Zimmer - HELOCs are still out there even on investment properties and even going to 80% LTV with very favorable rates. The best advice I can give you is get on the phone and start calling local smaller banks and credit unions. You'll probably spend quite a bit of time on the phone over the course of the next two weeks but you'll find it.

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  • David Zimmer
    OP
    Tallahassee, FL · Member since 2017 · 46 posts · 8 votes
    4y
    Quote from @Sergey A. Petrov:

    @David Zimmer - HELOCs are still out there even on investment properties and even going to 80% LTV with very favorable rates. The best advice I can give you is get on the phone and start calling local smaller banks and credit unions. You'll probably spend quite a bit of time on the phone over the course of the next two weeks but you'll find it.


     Thanks Sergey. After posting I noticed this thread talking about finding the type of thing I was curious about. Appreciate the input!

    https://www.biggerpockets.com/...

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