Scaling LTR portfolio

[David Brown]

I have a long term rental that cash flows $900/month with about $200k in equity. The interest rate is at 3% on the home and doing a cash out refi would eliminate that low interest rate. The home is under and LLC that rolls up to a trust. Bank says I'm unable to do a HELOC on the property since it's under a business. Any suggestions on ways to access the equity and use to acquire another property without compromising the existing interest rate on the property?

[Kerlous Tadres]

Hey David, from my experience, HELOCs usually won't work on LLC properties. I would suggest looking at a refi through a portfolio or private lender that works with LLCs rates might be a bit higher, but it keeps things legal. Another option is using equity from another property you personally own to fund your next purchase, or even private/seller financing, like selling a partial interest or getting a note from an investor.