HELOC on Rental Properties
Hello BP community. Does anyone know where we can get a HELOC on rental houses that still have mortgages on them? I would like to pull some equity out of a couple of rental houses in the form of a line of credit. Of the local lenders I have contacted, most have said they do not offer lines of credit on investment properties. One lender said they would, but only if the properties were in their local area (which they're not). Another lender will offer lines of credit on investment properties but not in second position behind a mortgage.
Some have asked why we don't just consider a cash-out refinance on those properties. Two reasons. First, we want access to the cash, but we don't have an immediate need for it yet so we're not interested in significantly increasing a mortgage payments and reducing our cashflow just to pull out some equity. Second, I don't want to lose our financing terms, as both of those particular properties are financed long-term at 3.25%.
Any suggestions would be greatly appreciated!