I own a condo in Hall County, GA (near Gwinnett). The mortgage was paid off about 5 years ago and owe $2600 on a HELOC that's in the repayment phase. Market value is $200k.
I flip residential properties in NC. Rather than having to pay $10k in closing costs to my HML for every house I buy, I'd like to use the equity in this rental to purchase.
Because I'm usually in and out of a house in 3 to 6 months a cash out refi or DSCR won't serve my needs.
I've spent hours (totaling weeks) looking for a HELOC (I've called every credit union and small to mid bank in the area, PenFed, contacted a host of online lenders and brokers both in the area and across the US). No dice.
How else can I use $150k (75%) of equity in this rental on a repeat basis?
Realtor · Athens, GA · Member since 2023 · 201 posts · 104 votes
3y
Hi Kim
Have you spoken to anyone at Commercial Bank yet? I use John Carson here in Athens at the Epps Bridge location. I recently spoke to him about setting up a heloc on a 5 unit portfolio that they hold the jumbo loan for. He said it could be done.
Another option would be private lending. Perhaps someone would give you 150k with a 10% rate and the condo as the collateral backing it. If you are in and out quick the 10% would be minimal cost to you.
Pay off the HELOC and then do a cash out refi on the condo, this will give you $150k cash to use on your flips.
That would be plausible if I did flip after flip. But I’m more of a casual investor - buy something when I have the time to put forth (2-6 per year). Meanwhile the funds sit in the bank when I’m between houses collecting 2% interest while the loan is at 8%.
I checked with them - don’t recall if they don’t do rentals, condos, GA or if they have stoped their program for the foreseeable future. Whatever it was, no dice.
Have you spoken to anyone at Commercial Bank yet? I use John Carson here in Athens at the Epps Bridge location. I recently spoke to him about setting up a heloc on a 5 unit portfolio that they hold the jumbo loan for. He said it could be done.
Another option would be private lending. Perhaps someone would give you 150k with a 10% rate and the condo as the collateral backing it. If you are in and out quick the 10% would be minimal cost to you.
Thanks for the info on Commercial Bank! I’ll give them a ring! I wouldn’t mind 10%. Even willing to pay large closing/funding costs once. But it’s the repeated $5-$10k I’m trying to avoid.
(I can get 10% with $10k in closing from my HML with using the flip as collateral.)
Have you spoken to anyone at Commercial Bank yet? I use John Carson here in Athens at the Epps Bridge location. I recently spoke to him about setting up a heloc on a 5 unit portfolio that they hold the jumbo loan for. He said it could be done.
Another option would be private lending. Perhaps someone would give you 150k with a 10% rate and the condo as the collateral backing it. If you are in and out quick the 10% would be minimal cost to you.
Just got off the phone with James Carson. Having to call it a commercial loan, but doesn’t require I put the property in my LLC and it seems he’s going to be able to do the loan! Can’t thank you enough for the referral!