Heloc on investment property

[Dejuan Calloway]

I have a rental property now that I wanted to take a Heloc out on this this possible and how?

[Jeff Copeland]

It's difficult (banks don't like them), but not impossible. Start making calls and shaking hands with local bank managers (small community banks often have more flexibility).

Here's what banks do like:

• Deposit relationships - active accounts with strong balances and frequent/regular deposits
• Low risk, secured debt

I point that out because you'll get a lot more traction with:

"Hi Mr. Bank Manager, I'm looking to open several deposit accounts with a local bank, and I'd also consider opening a 12 to 24 month CD (if I can turn around and borrow against it in order to establish a secured debt relationship with your bank). Once we've established a track record, I'd also like to pursue a line of credit secured with one or more of my rental properties later on. Is that something you think you could work with?"

than you will with: 

"Hey, Do you guys do HELOCs on rental properties?"