HELOC on a Rental

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HELOC on a Rental

Aaron WolmanPro Member
Malden, MA · Member since 2023 · 5 posts · 2 votes

Hi all,

I currently live in Massachusetts, and I have a multifamily rental property in Pennsylvania that has built up a significant amount of equity. The current mortgage balance is approximately $170K, and the property is worth around $415K.

I've been trying to find a lender or product that would allow me to access some of that equity through a HELOC or similar line of credit, but I've had a difficult time finding options for an investment property.

If you have any advice on where I should look, lenders you’ve worked with, or connections that might be able to help me structure this, I’d really appreciate it!

TYIA

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Sean McKee
Rental Property Investor · Chicago, IL · Member since 2017 · 266 posts · 188 votes
2h
Quote from @Aaron Wolman:

Hi all,

I currently live in Massachusetts, and I have a multifamily rental property in Pennsylvania that has built up a significant amount of equity. The current mortgage balance is approximately $170K, and the property is worth around $415K.

I've been trying to find a lender or product that would allow me to access some of that equity through a HELOC or similar line of credit, but I've had a difficult time finding options for an investment property.

If you have any advice on where I should look, lenders you’ve worked with, or connections that might be able to help me structure this, I’d really appreciate it!

TYIA

They are hard to find on investment properties. I had to call 50+ banks and had multiple rejections, before I landed one with Huntington Bank. That was in 2019 and to my knowledge they no longer offer them. But I’m sure you will find someone.

Good luck and keep searching!

2Reply
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  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 497 votes
    12h

    If it's a HELOC, it will be a loan based on your income and your debt to income (DTI) ratios. There are investment property HELOCs out there that I have seen for 1-4 unit properties but they typically have a lower LTV cap compared to a primary home HELOC LTV. Also you will need a mortgage professional who has an NMLS license in the state the property is located in so the options of who can do the HELOC will be based on that. Maybe posting in the Classifieds section might be a good place as well for feedback.

    [email protected]818-770-0340
    Bright Skyline518 Reviews
    WebsiteView Page
    1Reply
  • Dwight Shook
    Lender · Fort Myers, FL · Member since 2026 · 3 posts · 0 votes
    12h

    I represent several lenders that can assist. Please message me to arrange a credible loan.

    0Reply
  • Joseph ScoreseBusiness Member
    Banker · Philadelphia · Member since 2009 · 2k+ posts · 631 votes
    10h

    Aaron — you're definitely looking in the right direction. Accessing equity from an investment property can be more challenging than doing a HELOC on a primary residence, but there are options available.

    Based on the numbers you shared — approximately $415K value with a $170K first mortgage — you have substantial equity to potentially work with.

    We offer investment-property equity solutions, including a DSCR HELOC and closed-end second mortgage, depending on the property, existing first lien, cash flow, credit profile, and overall CLTV.

    The advantage is that you may be able to access equity without refinancing the existing first mortgage, which can be especially valuable if you currently have a favorable rate.

    I’m a nationwide direct private lender and would be happy to take a look at the Pennsylvania property and see what structure makes the most sense. Feel free to connect with me or message me directly.

    1Reply
  • AJ ExnerPro Member
    Lender · Springfield, MO · Member since 2023 · 652 posts · 314 votes
    9h

    Hey Aaron,

    Should be a few options out there for you, how many units is the property?

    Some options in the 2-4 space, but getting a HELOC on anything 5+ would be pretty difficult.

    [email protected]417-427-2612
    0Reply
  • Devin PetersonBusiness Member
    Lender · Sarasota, FL · Member since 2022 · 2k+ posts · 664 votes
    6h
    Quote from @Aaron Wolman:

    Hi all,

    I currently live in Massachusetts, and I have a multifamily rental property in Pennsylvania that has built up a significant amount of equity. The current mortgage balance is approximately $170K, and the property is worth around $415K.

    I've been trying to find a lender or product that would allow me to access some of that equity through a HELOC or similar line of credit, but I've had a difficult time finding options for an investment property.

    If you have any advice on where I should look, lenders you’ve worked with, or connections that might be able to help me structure this, I’d really appreciate it!

    TYIA

    HELOC for rental properties are very easy. You underwrite it just like you would a normal DSCR first lien position but you need a 1.10 min instead of a 1.00. No appraisal should be required. Would be happy to connect and tell you a bit more

    [email protected]860-538-3672
    ProAlpha Capital56 Reviews
    WebsiteView Page
    0Reply
  • James Mc Ree
    Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 934 votes
    5h

    @Devin Peterson What terms are you seeing for rental HELOCs as 1st or 2nd liens, well-qualified borrowers, and LTVs for whatever you want to share?

    0Reply
  • Justin DubePro Member
    Investor · Member since 2026 · 22 posts · 6 votes
    4h

    I don't think anybody has asked. How many units is it? Does it have to be something you can draw on or would a 2nd work?

    1Reply
    • Aaron WolmanPro Member
      OP
      Malden, MA · Member since 2023 · 5 posts · 2 votes
      1h

      Good question, it’s a four-unit. I’m mainly interested in the line of credit for updates and potentially to fund a new project I’m working on. I don’t anticipate drawing the full amount, but I like having the dry powder available if I need it without paying interest on funds I’m not using.

      0Reply
  • Sean McKee
    Rental Property Investor · Chicago, IL · Member since 2017 · 266 posts · 188 votes
    2h
    Quote from @Aaron Wolman:

    Hi all,

    I currently live in Massachusetts, and I have a multifamily rental property in Pennsylvania that has built up a significant amount of equity. The current mortgage balance is approximately $170K, and the property is worth around $415K.

    I've been trying to find a lender or product that would allow me to access some of that equity through a HELOC or similar line of credit, but I've had a difficult time finding options for an investment property.

    If you have any advice on where I should look, lenders you’ve worked with, or connections that might be able to help me structure this, I’d really appreciate it!

    TYIA

    They are hard to find on investment properties. I had to call 50+ banks and had multiple rejections, before I landed one with Huntington Bank. That was in 2019 and to my knowledge they no longer offer them. But I’m sure you will find someone.

    Good luck and keep searching!

    2Reply
  • Priscilla Tagoe
    Member since 2026 · 1 post · 0 votes
    21m

    Hi! You're running into a real gap in the market — most traditional banks don't offer HELOCs on non-owner-occupied/investment properties, or they have very limited programs for it, which is why this has probably been tough to find.

    A few paths worth looking into:

    1. Cash-out refinance instead of a HELOC. since you have solid equity ($245K based on your numbers), a cash-out refi on the investment property could get you a lump sum instead of a revolving line, often more available than an investment-property HELOC.

    2. DSCR-based cash-out loans. Some private/non-bank lenders offer cash-out refinancing based on the property's rental income rather than your personal DTI, which tends to be more flexible for exactly this situation.

    3. Portfolio lenders or local credit unions — some regional banks/credit unions do offer investment property HELOCs, just far less commonly advertised than owner-occupied ones — worth calling a few directly and asking.

    I'm a private lender and work with investors on equity/cash-out situations like this — happy to walk through your numbers if you want a second opinion on what's realistic. Feel free to DM me.

    0Reply
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