HELOCs on properties in LLC

Member since 2019 · 3 posts · 4 votes

Hello, I have been looking into getting a HELOC on my rental property. What I seem to be running into is finding a place that would allow a HELOC on an investment property that is in an LLC. I haven't had much luck finding answers online but am wondering if anyone has pulled a heloc or opened a credit line on their equity on a property in an LLC. Any help would be appreciated! Thank you.

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Ashish AcharyaBusiness Member

CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes

@Evan Fogle

HELOC are usually for primary residences. You are asking about just the LOC on you investment asset.

From a tax perspective, pulling a LOC on a rental is fine; the interest is deductible as long as the borrowed funds are used for the rental or other business/investment purposes. The challenge is more on the lending side. Most banks won't issue LOCs directly to LLCs, since they prefer lending to individuals, and that's probably why you're hitting a wall.

What some investors do is keep the deed in their personal name to get the LOC, then run the rental operations through the LLC. Others look at commercial lenders or small local banks that are more flexible with LLC-owned property. Just keep in mind: however you structure it, the tax treatment of the interest follows where you use the funds.

This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.

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Samuel Awosolu
Lender · Florida / Georgia · Member since 2025 · 58 posts · 28 votes
1y
Hey Evan,

There are probably a handful of lenders that do 2nd position HELOCS on properties titled in an LLC. Where is your property located? Also how much ownership do you have in your LLC? I have 2 lenders that will do a HELOC in an LLC. They do have specific requirements. If you send me a DM I can give you more specifics.

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- Jenniffer Gonzalez
  Member since 2020 · 8 posts · 0 votes
  1mo
  Quote from @Samuel Awosolu:
  
  Hey Evan,
  
  There are probably a handful of lenders that do 2nd position HELOCS on properties titled in an LLC. Where is your property located? Also how much ownership do you have in your LLC? I have 2 lenders that will do a HELOC in an LLC. They do have specific requirements. If you send me a DM I can give you more specifics.
  
  Hi! Could you please share which 2 lenders would issue a HELOC for an LLC investment property? Thanks!
  0 Reply
Vasudev Kirs
Member since 2019 · 88 posts · 25 votes
1y
Hey @Evan Fogle I am in similar position and posted a question in real estate forums. Have you had any luck so far?

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Ashish AcharyaBusiness Member
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
1y
@Evan Fogle
HELOC are usually for primary residences. You are asking about just the LOC on you investment asset.

From a tax perspective, pulling a LOC on a rental is fine; the interest is deductible as long as the borrowed funds are used for the rental or other business/investment purposes. The challenge is more on the lending side. Most banks won't issue LOCs directly to LLCs, since they prefer lending to individuals, and that's probably why you're hitting a wall.

What some investors do is keep the deed in their personal name to get the LOC, then run the rental operations through the LLC. Others look at commercial lenders or small local banks that are more flexible with LLC-owned property. Just keep in mind: however you structure it, the tax treatment of the interest follows where you use the funds.

This post does not create a CPA-client relationship. The information contained in this post is not to be relied upon. Readers are advised to seek professional advice.
[email protected]941-914-7779
INVESTOR FRIENDLY CPA®5241 Reviews
Website View Page
TaxMD® | Tax Planning Software
Website View Page
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Fulton Abraham Sanchez
CPA| New Clients Welcome| 50 States · Member since 2016 · 435 posts · 93 votes
1y
@Evan Fogle, hi. Most lenders won't issue a HELOC directly to an LLC, since they typically require the property to be in your personal name. Some investors temporarily transfer the title to qualify, then deed it back to the LLC after funding. There are also a few portfolio lenders that work with LLCs, though rates are usually higher. It's important to structure this from both a tax and liability standpoint.
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Aiden AvtgisBusiness Member
Real Estate Agent · Cleveland, OH · Member since 2024 · 37 posts · 21 votes
1mo
Any traditional bank that publicly markets HELOCs for an owner-occupied primary residence typically has no options for an investor (LLC) owned rental property.
There's an entire sector of non-bank and private lenders specializes in investment-property HELOCs — 1–4 unit rentals, LLC-titled or personal. Many investment property lenders also offer DSCR HELOCs, which are much more investor-oriented and often require LLC ownership vs personal ownership.
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