Hello BP Community,
Have you had experience with equity lines of credit on rental properties? What kind of qualifications do lenders use for them? Are they harder to establish than lines of credit on primary residences? How did you go about finding lenders that would set one up (I know many traditional lenders won't)?
@Mike Dorneman , thank you for your reply. And hats off to you for doing a deal per month, that's awesome! I'm feeling like I may not have bought well enough to BRRRR on this one. It cash flows well, but I refinanced to pull the money back out, there won't be much of cash flow cushion left if I need to lower the rent at some point in the future. That's why I'm wondering about a line of credit instead. So I could use the equity on an as-needed basis instead, and replenish it when I BRRRR then next one! :-D
Have you ever opened a line of credit on any of your rentals vs a cash out refi?
PS - Nice to talk to a fellow Pennsylvanian. I grew up in Western PA, but had to get south to escape the winters.
I am having trouble finding a bank that does HELOCs on investment properties in the Indianapolis area any advice would be appreciated!!!!!
Wells Fargo, TD Bank and PenFed said yes, when others said no.
I would also try local community banks or credit unions.