Investor · Phoenix, AZ · Member since 2011 · 104 posts · 13 votes
Guys, I'm trying to obtain a line of credit, like a HELOC on a rental property I own for renovations. The banks I've talked to so far only do a line of credit on a primary residence, or a cash out refi. The property is just about paid off and I'd rather not have a larger mortgage on it if I can avoid it. Any options?
Have you spoken to smaller community banks? They are much more flexible than the bigger chains. May also be a good idea to open a checking account with one of them as a show of good faith. You don't have to put much money in the account.
I have a business account at US Bank. Will give them a try. There’s at least $50k in equity on this property. Didn’t think it’d be such an uphill climb.
A few national banks and many regional or local ones are offering HELOC on investment properties.
It become more difficult if your properties are not owned in your name, or if the LLC is not a disregarded one.
Also the fact that your property is vacant currently and for renovation is another hurdle for some banks and insurances.
But continue to search and you’ll find some.
That is one of the reason that my companies have multiple bank accounts with many local credit union to build a relationship with them as they are more encline to help me with these exotic loans.
@Mike S. it’s fully occupied. Just closed and it needs foundation and electrical repairs that prior owner neglected. Small banks are the way to go. Thanks!