Convert HELOC into home equity loan/other?
(not sure this is the best forum for this question. Let me know if I should move it)
I posted something along these lines earlier but thought maybe a more specific question would be better.
Crazy market here but here are the numbers:
Bought a primary residence in '13 for 249K
Appraised in spring '16 for 355K
Took out a HELOC in summer of '16 and used 55K for a downpayment on a rental property that was 255K in fall of '16. Conventional mortgage for remaining 200K
Did some work to the place, are on to 2nd set of tenants. Now cash flowing ~220/month from rental property.
I'm happy with how it's all gone but don't like the looming HELOC increase, especially with rising rates. Am thinking about options to pay down the HELOC and replace with a more conventional P+I loan. Any suggestions? I think there's a chance the rental would appraise for just high enough to get a equity loan against that and still maintain 20% equity (~319K) but don't know if that sort of thing is allowed so soon after purchase (just over a year now). Any thoughts? I know this isn't the typical way to get into the rental market but we took the leap and so far, so good. Thanks.