LOCs in Rental Properties while Keeping a 1st Mortgage

[Tanner Hamilton]

Hi, all,

I have a property that I believe to be worth $190,000 (assume I'm right for this discussion). The outstanding principal on my mortgage is about $90,000, so I have $100,000 in equity. I have thought about refinancing to cash out and invest in other properties, but another investor I know recommended that I get a LOC on the equity, while keeping my first mortgage.

If I can get this, it seems attractive- I could take out the money when I needed it and put the money back into the property when I don't (to avoid additional interest payments). Has anyone done this? Is it difficult to do? I've talked to a banker who seemed relatively open to it. However, I would definitely like to hear other thoughts before moving forward.

Thank you!