Heloc on a DSCR?
Has anyone here done a HELOC , DSCR style on a long term rental property. I saw a company that does them in another state and would like to find someone who does them in the Carolinas.
I have a triplex, private mortgage with $63k left @5% so i am not looking forward to ending that for double the rate. A HELOC would fit my needs. The property is estimated to be around $300k in it's last evaluation. Estimated market $400k+ (county taxes are based on $380k). I want to update and bring the units up to market rents which is $1200-1300each. Currently one is at $800 and the other $1200 (hers has already been renovated). 3rd unit 90% complete.
Looking for $40-50k for rehab and a little extra to purchase my 3rd rental before it hits the market. Maybe $150k?
DSCR loan i looked at is 200k for $1500/month. Like I said, it's hard to give up that 5%