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Creative Real Estate Financing

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Matthew Woller
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HELOC on rental property - What are my options?

Matthew Woller
Posted Feb 27 2023, 09:20

I'm looking for a HELOC on a duplex that's fully rented in Hastings, MN. i owe 184, the home is worth roughly 280.

I'm having trouble finding a lender that does HELOCs on investment properties.  does anybody have any advice?

thank you!

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Taylor Dasch
  • Real Estate Agent
  • Temple, TX
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Taylor Dasch
  • Real Estate Agent
  • Temple, TX
Replied Feb 27 2023, 09:27

Very hard to find, your best option if you dont want to refinance is to get a second lien loan. These are hard to find as well but similar to a HELOC

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Dominic Pizzi
  • Lender
  • Freehold, NJ
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Dominic Pizzi
  • Lender
  • Freehold, NJ
Replied Mar 6 2023, 11:53

I agree with what Taylor said. Many lenders use HELOC as a liquidity requirement to cover PITIA reserves, but can't use them unless you cash them in (nobody really wants to do that).

Second lien position would work well in this case, you've got to find the correct lender or partner who is willing to jump on as second position. Or, you can refinance at 75% LTV, pay off what is owed and keep the rest as investment cash.

Good luck!

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Adam Tafel
  • Real Estate Agent
  • St. Paul, MN
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Adam Tafel
  • Real Estate Agent
  • St. Paul, MN
Replied Mar 31 2023, 14:09

Citizen's Bank in MN has a product for this, if you'd like an introduction send me a PM. 

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Brandon Plombon
  • Banker
  • Minneapolis, MN
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Brandon Plombon
  • Banker
  • Minneapolis, MN
Replied Apr 4 2023, 09:04

@Matthew Woller I would be able to help you out. Send me a message with more info.

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Matthew Woller
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Matthew Woller
Replied Apr 7 2023, 07:57

Message sent.  Thanks!