Rental Helocs or 2nds

[Ted Almeida]

Like most of you, I have a lot of property with under 50% ltv and great rates. I'd like to tap into that equity for future investments without giving up my rates, so I'm wondering what you guys are seeing for the best helocs / 2nd mortgages. I'm in Arkansas, they must be able to lend in my state. Thanks in advance! Ted

[Douglas Skipworth]

Back in 2018, I was in the exact same boat you are @Ted Almeida (what a great "problem" to have, by the way!). Instead of getting a 2nd position loan on all of the properties, I refinanced 1/2 of them with a national rental property lender, upping the leverage to 75% LTV, and then paid off the other half of the properties. (I'm so glad I did this because having free and clear properties is every investor's dream come true!)

Once the other half were debt free, I took them to a local lender who gave me an 80% LTV (first position) line of credit on those properties.

I'm not sure if this is the right strategy for your specific situation, but I've found it to be a great way to tap into the equity.