Looking to buy a vacant home in Forney that needs significant repairs so I cant get a typical loan approved on home.
i currently have 1 paid off rental property and was wondering if anyone knew of local banks that give HELOCs on a rental property so I can purchase this other property.
Why not consider permanent financing on the rental property you own? Plenty of firms can do that.
Taking out a new mortgage should give you enough to buy three more properties. If you did, you would have much more cash flow than you have today, it would reduce your tax burden, reduce risk from your one property going vacant, reduce the likelihood you will get sued, and gives you an amazing hedge against inflation.
Debt-free rental property saps total returns.
@Shelby Sample I have called a lot of local DFW banks and have yet to find one that will do a HELOC on an investment property. If you find one, let me know!
Since you have completely debt free property, you can approach it from a different angle with a local bank. I recently got a secured line of credit using a free and clear rental property as collateral from a local bank I already had a relationship with.
As @Greg Scott mentioned, another option is to get a 30 year mortgage on your rentals and put that equity to better use long term.
@Shelby Sample Have you looked into cross-collateriization of your existing property? I think it would achieve the same thing you are trying to do with a HELOC with less risk for the lender
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