Getting equity out of multifamily house
Hello everyone! I've been a member for a while now kind of waiting in the weeds while getting prepared to really start investing. I have learned a lot from reading the posts on this site and listening to the podcasts. Thank you all for sharing your experience and knowledge. If only there were communities like this years back when I was in a different position, but alas here I am. And I can definitely say experience was one hell of a ruthless teacher.
Just 7 years ago we(my mother and I) had 2 multifamily houses and a small pub. The pub was failing badly I was worn out. The rentals were keeping it alive,barely. We ended up sacrificing one house by letting the bank take it back because we could no longer maintain it properly and pay the mortgage. Then just a couple years later we sold the pub for very little. The last house is a 3 family that we were living in. Mom had suffered a stroke years back and the wasn't quite the vibrant woman that ran these ventures. Because of the losses we were taking and the amount of equity in the home she took a reverse mortgage.(The amount of knowledge we had in actual RE investing could fit in a thimble)
When mom passed about 1 1/2 years ago there was no will. Being the sole heir I was able to refinance with plenty of patience from the bank. THANK GOD!
Now I'm in the house hack biz! 3 units, one of which I live in with my 2 daughters and I am looking to expand my modest portfolio. The house is valued at about 310k and I owe 150k. Which leaves me plenty of equity...in theory. Obviously, it's there, getting any out is proving difficult. Refi with cash out seems to be a non starter because I lack the reserves required for a multi and my credit is a work in progress but improving. A HELOC is what I'm attempting now but they are dragging their feet, large corp bank. Ideally I'd prefer refi w/cash out but I'm hoping to use the HELOC to get started in that direction. Using that money to season for a few months before trying again.
If anyone has an ideas or insight into my situation, I would appreciate it. Let me know if there's anything I perhaps haven't thought of or programs that my help get things going.
Again, Thanks for all the wisdom you've all imparted and best of luck to everyone! Keep the knowledge coming. It really helps!!!
Jamie