Best Way to Access Equity in Investment Property?

Question

I own a duplex in central TX, in which I have about 70% equity, maybe more, with a 3.87% rate on a conventional mortgage.  I haven't lived in it for years, so it's now an investment property.  I have a great credit score, am employed, etc.

What's the best way for me to access equity in this TX property provided that I do not want to sell it? And why? I would like to use the equity to purchase more real estate or a business.

From what I can gather, my options seem to boil down to a HELOC, HEL or possibly a 2nd lean DSCR. Rent/PITI is currently about 1.35.

Open to any approaches - creative or not.

Thanks for your help!

Elealeh Fulmaran · Answer

With that much equity and a solid rate, I’d preserve the first mortgage and add a second: shop local banks/credit unions for an investment‑property HELOC with draw‑as‑needed and interest‑only terms, or a closed‑end home‑equity loan if you want fixed payments; avoid a full cash‑out refi that resets your great rate. If HELOC terms are weak, a small second or DSCR second can work, but stress‑test so your combined payments are covered by current rents with cushion for vacancies and CapEx. Whatever you choose, line up your take‑out plan before drawing, keep a cash buffer, and only pull what your next deal needs.

Josh Stanley · Answer

I'd like to know as well