Using Rental Property Equity to Grow My Portfolio — Need Advice

[Mustafa Mahmoodzada]

Hello BP Community,

I own a primary residence and a rental property in Woodbridge, VA. I currently have about $450,000 in equity in the rental property. I’d like to leverage that equity to purchase additional properties and grow my real estate portfolio.

I’m particularly interested in the BRRRR strategy and eventually investing in new construction. I’ve reached out to two credit unions and the lender for my primary residence about getting a HELOC on the rental property, but they don’t offer HELOCs on investment properties.

I’m reaching out to this professional BP community for financial advice:

What are some financing options available to me to tap into the equity in my rental property?

Thank you in advance!

[Patrick Roberts]

There are a few lenders offering DSCR 2nd liens right now. Theyre expensive, but it may make more sense than a cashout refi of the existing 1st lien if it has a low rate and large balance. It will all come down to the math on the specifics of the rates, balances, and paydown timeframe.