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Shane Gaude
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Rental property question

Shane Gaude
Posted Dec 19 2023, 05:13

I’ve purchased a investment rental about a 1 1/2 yrs ago. I used a Heloc to purchase the property and do some needed renovations over the past year. I’ve raised rent slowly for long term tenant that has been there for 5 yrs or so. Long story short. Purchase price was 80,000. Put 20,000 down from Heloc.  Spent roughly 8000 on AC and other exterior repairs. Is my loan seasoned enough to refinance,  to get access to my Heloc for next deal? Should I use a different lender for this? Considering bigger pockets for that?  Other similar properties in area are listed for 120,000-130,000. Have not renovated interior, was waiting for tenant to move do renovations would be easier. Thanks for anyones feedback.

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Ryan Muska
  • Lender
  • Saddle Brook, NJ
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Ryan Muska
  • Lender
  • Saddle Brook, NJ
Replied Dec 19 2023, 07:15

Depending on the size of the loan, it may be more beneficial to go to a local lender due to them being more familiar with the area and more willing to deal with small loan amounts.

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AJ Exner
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  • Lender
  • Springfield, MO
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AJ Exner
Pro Member
  • Lender
  • Springfield, MO
Replied Dec 19 2023, 07:29
Quote from @Shane Gaude:

I’ve purchased a investment rental about a 1 1/2 yrs ago. I used a Heloc to purchase the property and do some needed renovations over the past year. I’ve raised rent slowly for long term tenant that has been there for 5 yrs or so. Long story short. Purchase price was 80,000. Put 20,000 down from Heloc.  Spent roughly 8000 on AC and other exterior repairs. Is my loan seasoned enough to refinance,  to get access to my Heloc for next deal? Should I use a different lender for this? Considering bigger pockets for that?  Other similar properties in area are listed for 120,000-130,000. Have not renovated interior, was waiting for tenant to move do renovations would be easier. Thanks for anyones feedback.


Hey Shane,

120k-130 is well within the ballpark of most lenders for minimum property values. I know a few of my clients that work with lenders that go down to 75k on property value, so it sounds like you should be good. 

It seems that you have two options at this point. You could do a refinance/rehab based on the existing property value and needed renovations, as long as the ARV makes sense. Or you could use the tenant that is in place and just do a 75% cash out refinance and secure it under a long-term DSCR loan.

Options are a blessing and a curse sometimes. Feel free to reach out if you need to talk through it.

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Shane Gaude
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Shane Gaude
Replied Dec 20 2023, 06:03

Thank you for taking time out to answer my questions.