Using the equity of an Investment Property

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Using the equity of an Investment Property

Andrew RohachPro Member
Real Estate Agent · Sewell, NJ · Member since 2016 · 17 posts · 3 votes

I have a current rental that I have more than 50% equity available. I'm having trouble trying to find ways to tap into it. My current interest rate on the loan is 4.25% so I'm not exactly interested in a cash out refi and want to know if anyone has thoughts on better ways to tap into that equity. Appreciate the help and look forward to the responses.

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  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    3y

    Look into a second mortgage if this is a non owner occupied property. Max CLTV is 85% for NOO properties. Minimum loan amount is $75,000. Terms are 30 years fixed, 10 year fixed, or 15 year fixed. Rates are in the 9-10% depending on fico.

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  • Chris Davidson
    Real Estate Agent · Boise, ID · Member since 2016 · 1k+ posts · 888 votes
    3y

    @Andrew Rohach you can get a second but terms aren't going to be great, you can sale entirely or sale a portion of it by bringing on a silent partner. If you are trying to get the best rates and terms you usually handicap your access to equity if terms are no longer favorable. 

    I'd push back and ask does the 4.25% rate really make a difference? What do numbers look like with 7% is it completely bad or just not as good...

    Best of luck!

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