Updated over 5 years ago on . Most recent reply
HELOC to refi Single Family Home
I am new to real estate investing and to bigger pockets. My apologies if this has been covered. I currently own 2 investment properties both SFH. One is owned free and clear the other has a mortgage. My financial advisor advised I set up an LLC for my investment properties which I have done. Now I am having trouble moving the mortgaged property into the LLC because of a due on sale clause. The house that I own free and clear I am planning on taking a HELOC (preferably a fixed-rate?) out on to pay off the mortgage of the other house. I say HELOC because currently it looks like I can get a better interest rate than with a mortgage. The property that will be collateral is currently for sale, and been on market for 122 days. I plan on taking this property off the market and putting a renter in for 1 year lease. After the HELOC has been issued I'll put the house back up on the market. This way I'll be able to move my mortgaged property, now owned outright, into the LLC. Make a little more off the rent of that property and turn the property I had free and clear in to a income generating property instead of sitting empty on the market. Will this work? Am I missing something?