Advice on Selling situation

[Julie Philpott]

Hello, I own a small condo in the greater Boston area (Fall River). It has been a great rental with a fixed conventional mortgage rate, generating cash flow from day 1 and already gaining equity due to the increased value. However, I have found it tiring to manage since it is far away from my primary residence. I have attempted to put it on the market for sale, but there hasn't been much interest. I am considering taking out a HELOC on this property to purchase another property closer to my primary residence. Please provide me with some advice.

[Lindsey Mannix]

Hi Julie,

A lot of lenders don't like to do HELOCs on investment properties but I would click on the lenders list that BP offers and see if you can find one there that may do this. Sometimes local credit unions or banks nearby are more up for this kind of thing. 

Best of luck!

~ Lindsey

[Erik LaBonte]

Quote from @Julie Philpott:

Hello, I own a small condo in the greater Boston area (Fall River). It has been a great rental with a fixed conventional mortgage rate, generating cash flow from day 1 and already gaining equity due to the increased value. However, I have found it tiring to manage since it is far away from my primary residence. I have attempted to put it on the market for sale, but there hasn't been much interest. I am considering taking out a HELOC on this property to purchase another property closer to my primary residence. Please provide me with some advice.

 Hi Julie,

Have you looked into hiring out a property manager for your investment property? Since it already cash flows, that could ease that burden for you.

For funds, I'm not sure what your existing rate and terms are but you could always try a cash out refinance to fund the next property. There are lenders around that would work with you on that, probably moreso than a HELOC.

[Chris Seveney]

@Julie Philpott

Why not get a property manager?if it’s a good rental - can you sell and get one that does better? It’s difficult to get a line of credit on an investment property

I would just get a PM and pay them to manage it.

[Theresa Harris]

As the others said, you could get a PM.  But have you talked to your realtor about why it isn't selling?  Is it the price (sometimes $449K vs $455K makes a difference in who sees it), location or something else?  How long has it been listed and are there other units in the building for sale?

[Michael Smythe]

@Julie Philpott why not just hire a property management company?

[Steve Milford]

@Julie Philpott Maybe hire a property manager?

[Lien Vuong]

Given the rate environment I'm not sure that a HELOC makes much sense or if you'll get something significant enough to buy something closer to Boston. Will you be selling the unit tenanted? Perhaps emptying it so that it can attract an owner occupied buyer is a good alternative or hiring a PM company to off load some of the work there for you. I'm sure that it's taxing emotionally to have to deal with tenants as well as making the commute.