HELOC For portfolio
Member since 2021 · 49 posts · 33 votes
HELOC For portfolio
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Erik EstradaBusiness Member
Lender · Member since 2022 · 6k+ posts · 1k+ votesQuote from @Jemma Jacques:
Hi,
I am trying to finance my first multifamily.
I have 15 cash flowing properties with $900k of equity,
since they have low current rates I'd like a heloc or other ideas to find $150k for the multi family down payment.
any advice or ideas please?
Thanks,
Jemma
There are HELOC programs for investment properties however it is not a true "no doc" program. The lender still needs to verify income through plaid and will determine the max HELOC balance allowed based on your banking activity
LuxePrivate Investments LLC 572 Reviews
13 Replies
- 2moIrv ArreolaPro MemberLender · Los Angeles CA · Member since 2026 · 25 posts · 3 votes
Hi Jemma, So with 15 doors and $900k in equity you've got a few ways to get to $150k without blowing up the low rates you're sitting on.
The cleanest option that keeps your existing loans untouched is a HELOC or line of credit on one or two of the rentals. The catch is investment property HELOCs are harder to find than the ones on a primary residence, and most lenders that do them cap you around 70 to 75% CLTV and price higher. Local banks and credit unions around Cleveland are usually your best shot for those, so it's worth calling a couple of portfolio lenders directly.
If a HELOC doesn't pencil, the other route is a DSCR cash out refi (investors choice) on just one or two of the properties instead of the whole portfolio. You'd only give up the low rate on the specific doors you pull from and leave the rest exactly where they are. Pulling $150k against $900k of equity is only about 17% of your equity, so you've got a lot of room and could probably hit it from one or two of the higher equity rentals.
2 things really drive which way is cheaper:
what rates you're actually holding on the properties you'd tap, and whether those specific ones cash flow enough to cover a new payment at today's DSCR rates. If a property is at a 3 or 4% rate and cash flows tight, leave it alone and pull from a different one. Happy to run the DSCR numbers on a couple of your Cleveland properties so you can see what a cash out would actually cost versus a line of credit.
- 2moErik EstradaBusiness MemberLender · Member since 2022 · 6k+ posts · 1k+ votes
Quote from @Jemma Jacques:
Hi,
I am trying to finance my first multifamily.
I have 15 cash flowing properties with $900k of equity,
since they have low current rates I'd like a heloc or other ideas to find $150k for the multi family down payment.
any advice or ideas please?
Thanks,
Jemma
There are HELOC programs for investment properties however it is not a true "no doc" program. The lender still needs to verify income through plaid and will determine the max HELOC balance allowed based on your banking activity
LuxePrivate Investments LLC 572 Reviews - 2moJared CraftPro MemberLender · MI · Member since 2025 · 16 posts · 6 votes
With $900k in equity, I’d be careful not to assume a HELOC is automatically the best answer.
The first thing I’d want to look at is: How much equity is in each property? Which loans have the lowest rates? Whether the multifamily will qualify on its own, and your long-term acquisition goals.
Sometimes a HELOC makes perfect sense. Other times, a DSCR cash-out on one or two properties, a blanket loan, portfolio line of credit, can preserve more of your low-rate debt and improve your overall leverage.
The goal isn’t just finding $150K, it’s getting that $150k in the way that leaves you in the strongest position to buy the next property after this one.
Happy to bounce around some ideas if you don’t mind sharing a few more details about the portfolio!
- 2moVijay FriedmanBusiness MemberMiami, FL · Member since 2026 · 766 posts · 122 votes
Quote from @Jemma Jacques:
Hi,
I am trying to finance my first multifamily.
I have 15 cash flowing properties with $900k of equity,
since they have low current rates I'd like a heloc or other ideas to find $150k for the multi family down payment.
any advice or ideas please?
Thanks,
Jemma
@Jemma Jacques
Congrats on building a 15-property portfolio. With that much equity, I'd also compare a portfolio HELOC against a cash-out refinance or even a blanket loan, depending on your current rates and how the properties are structured. Sometimes one option preserves more long-term flexibility than another. Definitely worth running the numbers before deciding. - 2moCameron GreenPro MemberReal Estate Agent · Cleveland, OH · Member since 2023 · 73 posts · 46 votes
Everyone above me already answered this very well. But Ill say it again, you have a few options depending on your goals and how your current properties are financed:
- A HELOC is a great option if your lenders allow it and you have enough available equity.
- A cash-out refinance on one or more properties could work, but you'd be giving up your current low interest rates.
- A DSCR cash-out loan may be available if the numbers make sense and the lender allows it.
- If you have strong cash flow, a portfolio loan secured by multiple properties is another route to access equity without refinancing each one individually.
- You could also consider bringing on an equity partner for the down payment if you want to preserve your liquidity.
With 15 cash-flowing properties and around $900k in equity, I'd recommend talking with a lender who specializes in investment portfolios. They can usually structure financing much more creatively than a traditional bank.
- Lender · Nationwide · Member since 2024 · 74 posts · 23 votes2mo
Quote from @Jemma Jacques:
Hi,
I am trying to finance my first multifamily.
I have 15 cash flowing properties with $900k of equity,
since they have low current rates I'd like a heloc or other ideas to find $150k for the multi family down payment.
any advice or ideas please?
Thanks,
Jemma
Hi Jemma,Congrats on building a solid 15-property portfolio!
Accessing $150k out of $900k in equity means you only need to leverage about 16% of your total equity pool, which puts you in a great position to protect those low first-mortgage rates.
To determine the most cost-effective path, look closely at how your equity is distributed and calculate your blended rate:
1. Equity Distribution Matters
If your $900k equity is evenly spread across all 15 properties (averaging $60k each), individual second liens or HELOCs will be difficult due to lender minimum loan sizes and repetitive closing costs. However, if the equity is concentrated in just one or two properties, an isolated second lien or a single DSCR cash-out refinance on those specific doors will be much cleaner and won't touch the rest of your portfolio.2. Run a Blended Rate Comparison
Don't automatically assume a second lien is cheaper just because it leaves your first mortgage intact. Second liens on investment properties carry significantly higher interest rates. Calculate the blended rate of your current low first mortgage combined with the new, higher-rate second lien. Compare that weighted average against today's standalone DSCR cash-out refi rates on a single property to see which option results in a lower total monthly interest expense.3. Verify DSCR Capabilities
If you choose a DSCR cash-out on one or two properties, ensure those specific assets have strong enough rental income to cover the new, higher mortgage payment. Most commercial lenders look for a Debt Service Coverage Ratio (DSCR) of 1.00 to 1.25, though some no-ratio programs exist if a property is temporarily under-rented.A good next step is to pull your current mortgage statements and map out the exact equity and interest rate for each property to see which specific doors make the most mathematical sense to leverage. - 2moAshish AcharyaBusiness MemberCPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
@Jemma Jacques, with 15 cash-flowing properties and $900k in equity, using a HELOC to pull $150k for a new down payment is a solid, common approach, and it keeps your existing low-rate mortgages untouched, which a cash-out refi would disturb. From a tax side, the interest on that HELOC is deductible as investment interest tied to the multifamily purchase, not as a personal expense, as long as you can trace the funds directly to that acquisition, worth keeping clean documentation on which property the HELOC comes from and where those funds go so that tracing holds up.
With 15 properties already, cost segregation is worth confirming has been done consistently across your portfolio, and definitely worth doing on the new multifamily once you close, given multifamily properties tend to have more shorter-life components (site improvements, common area electrical, parking) than single-family homes. Also worth checking your material participation status across this expanding portfolio, at 15+ properties, some investors are close to or already at REPS status, which changes how losses (including the depreciation from a new cost seg study) can be used against your other income, that's worth reviewing with your CPA before this next purchase closes rather than after. Happy to connect!
INVESTOR FRIENDLY CPA®5241 Reviews - 2moAaron ZimmermanBusiness MemberAccountant · Chicago, IL · Member since 2018 · 2k+ posts · 1k+ votes
Can you potentially get a business line of credit/investment property heloc against the houses? There was recently someone on the straight up Chicago investor podcast that had this lending product.
Brick House CPAs53 Reviews - CPA| New Clients Welcome| 50 States · Member since 2016 · 430 posts · 93 votes2mo
@Jemma Jacques, hi. With $900K in equity, you likely have several options beyond refinancing the entire portfolio and giving up the low rates. Consider a HELOC or second-position loan on the strongest property, a portfolio line of credit, seller financing, or bringing in an equity partner.
Compare the total cost, not just the interest rate, and avoid using all available equity. For a first multifamily, preserving reserves for repairs, vacancies, and lender requirements is just as important as funding the down payment.
- Real Estate Agent · Cleveland Ohio · Member since 2022 · 9 posts · 4 votes2mo
Hey Jemma, I have an amazing lender I work with who has a bunch of creative Strategies and is a investor him self as well. I personally use him and refer him to all of my clients. His name is Nick Toterella and he is with Main Capital Mortgage. His number is 440-724-2021. Just let him know I referred you if you choose to call him
- 1moBryan MaddexBusiness MemberLender · Charlotte, NC · Member since 2015 · 159 posts · 76 votes
Quote from @Jemma Jacques:
Hi,
I am trying to finance my first multifamily.
I have 15 cash flowing properties with $900k of equity,
since they have low current rates I'd like a heloc or other ideas to find $150k for the multi family down payment.
any advice or ideas please?
Thanks,
Jemma
Hey @Jemma Jacques. Older post but thought I would clarify a few answers and give some additional pro tips.
First, there ARE true no doc helocs, just not for investment properties!
There are several DSCR Helocs which will measure the PITI(+HOA) of the existing mortgage plus new HELOC. You can get up to 75% cLTV (combined loan to value) with these.
Most lenders will have limits of how many helocs you can do with them, so having multiple options will allow you to tap more equity.
As mentioned, but maybe not fully clear, there are 7 different lenders that offer "Stated Income" helocs, but they do look at your deposit history across all accounts (including business accounts now) to estimate your income. If you say you make $1,000,000 a year but you only deposit $20k a month, they cannot qualify you with the stated income.
However, these programs use GROSS income, not NET income so even if your tax returns show losses all over the place, this method of income can be greatly higher than what traditional underwriting or even Bank Statement underwriting would qualify you for.
Those helocs start with a soft pull, then verify income and most do not convert into a hard pull until you accept terms and move forward.
Also mentioned above, seek a Commercial Line of Credit. Smaller banks usually are better to ask than larger banks. I only have a very very limited number of clients that have ever been able to qualify for one, these are hard to find but out there. They often times take a blanket lien approach for a large line of credit.
Be aware, many commercial lines of credit have to be paid to $0 annually to prove the health of the business to stay open. Make sure you understand all of the terms when going for one of these. - Banker · MA · Member since 2026 · 120 posts · 31 votes1mo
The previous reply is right that investment property HELOCs exist and do require income verification, so that's worth knowing upfront. I'll add that we do equity lines on investment properties up to four units, so if any of your 15 fall in the one-to-four unit range, that's a direct path to tapping equity without touching the existing first mortgages.
A few other angles worth considering given your situation:
A cross-collateralized blanket line or a portfolio HELOC across multiple properties can sometimes get you to a higher combined draw than a single-property HELOC would. The catch is that it ties several properties together as collateral, which some investors are fine with and others aren't.
Another route a lot of portfolio investors in your position use is a cash-out refinance on one or two of the properties with the most equity relative to their loan balance. Yes, you'd be giving up a low rate on that specific property, but if the rental income still pencils after the new payment, you preserve the other 13 or 14 loans untouched. Run the numbers on that one carefully before dismissing it.
There's also the DSCR loan path for the new multifamily itself. If the property's rental income covers the debt service at the required ratio (typically 1.0 to 1.25 depending on the lender), you may be able to reduce how much cash you need to bring as a down payment by structuring the deal differently, or at least qualify without complicating your existing portfolio at all. After 31 years in the mortgage business I've seen a lot of investors overlook this because they're focused on where the down payment comes from rather than whether the asset itself can carry more leverage.
With $900K in equity spread across 15 properties, you have real options. The question is which ones fit your risk tolerance and cash flow targets on the new acquisition. Happy to walk through the numbers on any of these if it would help.
Jim Driscoll
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