I am looking for more information about finding my next deal possibly using a HELOC. Any leads on a lender and info on how it works etc.. I'm thinking I would like to try and find a multiunit in the Indianapolis area. Currently I own 1 LTR in Greenwood, IN and live/own a condo in Los Angeles. Any leads and info are greatly appreciated.
Property Manager · Indianapolis, IN · Member since 2010 · 1k+ posts · 1k+ votes
8mo
Agreed. Ask your bank that holds the note for your existing property and ask them. You should be able to get a total of 70-80% LTV on your asset. Rates on heloc are usually a little higher. Mine is Prime. But some are prime +1 or even prime plus 2. Maybe you can get better though.
If you have any questions about Indy happy to help.
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
8mo
Are you planning to pull a HELOC on your primary? HELOCs can be good but you want to target a deal where you can pay back the HELOC used. If you are using the HELOC as a down payment without being able to pay it off within a year or so then it'll get expensive. I bank with US Bank and they have HELOC programs. Check with your local bank first or who holds your mortgage.
Property Manager · Indianapolis, IN · Member since 2010 · 1k+ posts · 1k+ votes
8mo
Agreed. Ask your bank that holds the note for your existing property and ask them. You should be able to get a total of 70-80% LTV on your asset. Rates on heloc are usually a little higher. Mine is Prime. But some are prime +1 or even prime plus 2. Maybe you can get better though.
If you have any questions about Indy happy to help.
Realtor · Los Angeles, CA · Member since 2016 · 100 posts · 38 votes
8mo
I am a homeowner, mortgage broker and a realtor based in LA. We recently closed on a HELoan (Fixed rate) for a client. And then used it as a downpayment to purchase an investment property in Hawaii. If this is something you are looking to do, happy to discuss this further.
A HELOC tends to work best as short-term, flexible capital, not permanent leverage. The cleanest uses I've seen are bridging to a DSCR refi after stabilization, covering a down payment plus light value-add on a small multi, or filling a gap to improve takeout terms.
Where people get squeezed is treating the HELOC like a long-term second mortgage. Variable rates can quietly kill cash flow if there's no clear exit.
Since you own in two states, it's also worth checking which property actually gives you the best HELOC terms. Owner-occupied condos in LA sometimes get better pricing than out-of-state rentals, even if the rental cash flows better.
For Indy multis, be very pocket-specific and conservative on expenses. Before pulling the line, I'd underwrite backwards and make sure the deal allows you to pay the HELOC down or out within 12–24 months.
I am looking for more information about finding my next deal possibly using a HELOC. Any leads on a lender and info on how it works etc.. I'm thinking I would like to try and find a multiunit in the Indianapolis area. Currently I own 1 LTR in Greenwood, IN and live/own a condo in Los Angeles. Any leads and info are greatly appreciated.
Hi Jonathan — welcome! This is a very workable approach, and you’re thinking about it the right way.
I’ve helped clients (and personally structured) deals where home equity from a high-cost market like CA was used as the acquisition capital for Midwest LTRs, then stabilized with long-term financing once the rental is in place.
A few practical points from experience:
HELOCs work best as a bridge — speed + flexibility — but you want a clear take-out plan (DSCR or conventional) once the property is rented.
For small multifamily, make sure you're stress-testing rates + HELOC draw cost, since carrying both temporarily is common.
Lenders vary a lot on HELOC terms (CLTV limits, draw period, variable rate caps), so structure matters more than the headline rate.
Indy can work for LTRs, but I’d focus heavily on submarket selection and property management — that will matter more than the city itself.
Happy to share what’s worked (and what to watch out for) if helpful.