Equity stripping question for someone in Seattle area?

5 Replies

Hello all, 

I wondered if anyone could assist me with a resource for this conundrum :)

I own a cash flow positive SFH rental in Seattle that I'm trying to pull equity from for more investing (flipping) outside the state. I also now live outside the state (in Tennessee).

The issue is that I currently am not earning W2 income to pursue a typical HELOC from it. Also, I attempted to reopen a line I used to have on it years ago, but the credit union I worked with no longer allows this for out of state residents anyway. I'm pretty leveraged otherwise, with both one additional rental and a primary home here -- both mortgaged and with a HELOC.

Any creative strategies?  Current value of property is around $500K, only loan on it is a primary with $199K balance.

Thanks for any advice!

Charlotte Bishop

Keep trying banks until you find one that will do an out of state HELOC or sell it. PM me if you want an agent referral.

Best of luck,
Scott

@Charlotte Bishop

It's going to be hard without a W2. I've only known HELOCs to come from banks, and usually, they underwrite it in a similar way to conventional loans, which cares about your income, DTI, etc. But lending is getting looser and looser each year, so things may have changed.

You can get a non-conventional, asset-based refinance loan on it, but usually those come at a higher rate (5-8%).  But the problem is that you're in Seattle, which is hard to cash flow even at low bank rates.

Is the property worth keeping. If the rent is not close to 5K/month it really is not a good investment as a rental property. Better to sell now while markets are strong and move on to bigger and better things. 

If you have rental income on your tax returns, that should be usable. 

Try Jackie Shuey at Movement Mortgage.

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