Cash out refi question

[Philip Mankins]

Hi All-

I applied to for a conventional loan on a single family rental that I've owned for over 10 years.  I wanted to pull out $20k cash to help finance another purchase.  Additionally, the original interest rate was 6%.

Details: 54k owed. With a 75% LTV, I needed the house to appraise for about 98K. I thought it was reasonable, but it only appraised for 78K. So, conventional refinancing does not make sense at this point.

Now, I need to come up with 20k.  Hmmm.  Bought two houses last year, wasn't looking for a house and this deal fell into my lap.  Its an owner financed deal that I felt I couldn't pass it up.  The seller won't take less cash so I need the 20k more.

Any creative ideas?  Anyone done a heloc on a rental?  Who did you use?

Thanks in advance, Phil.