How many helocs can one set up for investment properties

6 Replies

I have been talking to banks and some say the maximum number of investment properties they can do a heloc for you is 4.
I'm planning to pay cash for my investment properties and then pull out the money using heloc.
Help!

Why would you do HELOCs and not just regular mortgages? HELOCs have variable rates and short terms.

Most banks will do conventional mortgages on up to a total of four mortgaged properties. A few will go up to ten. Beyond that you're looking at some sort of commerical loan. You may be able to do that on the first few properties, too. Only a few banks do this sort of loan, but the ones that do will be more investor friendly than conventional lenders.

Realize that if you want to use a new appraisal for the value and you want cash then you're looking at owning for a year. If you're willing to use the price you paid as the value, you can do this quickly. Not sure why you wouldn't just get the loan up front in that case.

You're about five years too late to make this strategy work really well.

Jon:
Thank you for this. I understand we can only have maximum 10 mortgaged investment properties and after that we have to use commercial loan which is a more expensive option. Therefore I think it's only worth it to use the mortgage for more expensive properties because of the fees banks charge.
There are several cheaper properties (they are good deals) I want to buy and I don't want to use up my mortgages for them. That's the only reason why I'm considering Heloc.

A portfolio loan is not cheap to set up and they have the risk of raised interested rate as well in the future. What I'm thinking is to use as little out-of-pocket money as possible for the first 3 years to acquire more properties.