Rental Property Investor · Drums, PA · Member since 2017 · 345 posts · 365 votes
7y
@Thomas Jaeger I Perfer to open a commercial LOC on my rentals. This way, the bank lends on the rental income “business value”, Vs simply the appraised value of the home.
Rental Property Investor · Drums, PA · Member since 2017 · 345 posts · 365 votes
7y
@Thomas Jaeger I Perfer to open a commercial LOC on my rentals. This way, the bank lends on the rental income “business value”, Vs simply the appraised value of the home.
Rental Property Investor · Drums, PA · Member since 2017 · 345 posts · 365 votes
7y
@Thomas Jaeger I’m typically seeing about 20% greater value with a commercial Vs. personal heloc.
Rates are slightly higher however. I got a 5.5% @ 20 years on a HELOC last week.
Rental Property Investor · Member since 2018 · 4 posts · 0 votes
7y
@David Goings I am a fairly new investor but i plan on using the LOC for a down payment on another buy and hold rental investment at some point in the short future. I have about $55k-$65k in Equity in my first rental property.
Specialist · Columbus, GA · Member since 2016 · 146 posts · 54 votes
7y
Thomas Jaeger sounds like a good plan...if the numbers on the credit line (interest/closing costs) and the new rental house works. I would caveat this by saying know the terms of the credit line in and out. Some have time restrictions that make the deal not worth doing. A concern of mine is how often it has to be renewed, longer the better in my opinion.
Buckley, WA · Member since 2018 · 18 posts · 6 votes
7y
@Mike Dorneman
Where did/do you find this product? I have a duplex that I had intended to put a HELOC however a 20 year commercial sounds better to me.
It should't be more than 5% on overdraft when somehting goes wrong with your loan or mortage ot anything like that. If it really goes bad you can always take something with quick loans like paydayloanstexas-tx.com and you'll have some time to get it all together and figure out what to do next. But be carefull, loans tend to multiply when you do not control your financial sutiation and you will have to take more and more to close previous ones and you will end with almost nothing but only debts. You don't want that to happen.