While $22,000 is a nice chunk of equity it may not be enough to get a HELOC or cash out refinance. Most banks will only allow a 75% LTV HELOC on investment properties (this can vary from bank to bank) - so if your property appraises at $100,000 you would not qualify for a HELOC due to your high LTV. Really depends on how much the property is worth.
With that said, every bank has different overlays/standards so if one bank tells you no I would recommend shopping around at your local credit union, etc..
I do like your line of thinking. At the moment I am in the middle of refinancing and applying for HELOC all at the same time.
Best of luck AJ.
Good thinking! I am in the process of using my home to get a line of credit to use for RE investments so I will share my example.
I went to the bank (First Interstate) with an $800k appraisal and a $450k mortgage. They told me that I cant surpass 80% loan to value ratio. I have already borrowed $450k (my mortgage) out of the maximum of $640k ($800k x .80) so that leaves $190k available to borrow as a line of credit. They told me if my credit score comes back above 750 then I can have the money at 4.5%, so I am paying off all my credit cards in full to help bump my score past 750 before i sign.
In your case, i cant calculate how much credit First Interstate would give you without knowing all the numbers, but it will probably be less than the total $22k so keep that in mind. Im happy to help if you have any questions!
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