HELOC on a Rental

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HELOC on a Rental

Aaron WolmanPro Member
Malden, MA · Member since 2023 · 5 posts · 4 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
2d
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!

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  • Stacy RaskinBusiness Member
    Lender · Member since 2022 · 1k+ posts · 497 votes
    2d

    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
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  • Joseph ScoreseBusiness Member
    Banker · Philadelphia · Member since 2009 · 2k+ posts · 631 votes
    2d

    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
    2d

    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
    2d
    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
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    0Reply
  • James Mc Ree
    Rental Property Investor · Malvern, PA · Member since 2016 · 1k+ posts · 934 votes
    2d

    @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
    2d

    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 · 4 votes
      1d

      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
    2d
    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
  • Gregory AcsPro Member
    Lender · MD · Member since 2025 · 153 posts · 57 votes
    1d

    Hi Aaron, there are definitely lenders that offer HELOCs and other equity products on investment properties, but the options are much more limited than they are for primary residences. Some portfolio lenders and credit unions offer these products, while others may recommend a cash out refinance or a standalone second lien depending on your goals.

    Since you have substantial equity, it's worth comparing multiple options instead of focusing only on a traditional HELOC. The right solution will depend on how you plan to use the funds, whether that's for another purchase, renovations, or simply having access to capital when opportunities come up.

    I'm a mortgage broker and work with investors on scenarios like this. I'd be happy to discuss your situation and see what options may be available. Feel free to send me a message.

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1d

    Happy to chat

    [email protected]818-269-7983
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    • Noah WrightBusiness Member
      USA, Nationwide · Member since 2024 · 166 posts · 86 votes
      1d

      A line fits your dry powder goal better than a cash-out refi, which charges interest on the full amount from day one. Most investment property HELOCs come from portfolio banks and credit unions near the property, so I'd start with Pennsylvania lenders. Some non-QM lenders also do second position lines underwritten off the property's rent, DSCR style. Most cap around 70 to 75% CLTV combined, and your current mortgage counts toward that cap. The rate is typically variable. A few lenders do soft-pull prechecks, so you can see terms before a hard pull. Would you take a first position line that pays off your current mortgage, or do you want that first lien untouched?

      [email protected]737-773-3717
      0Reply
  • Jiao Liu
    Houston, TX · Member since 2026 · 1 post · 0 votes
    1d

    Hi Aaron, commercial loan broker here — you're running into something very common. Most big banks only offer HELOCs on primary residences, so investment-property HELOCs are a much thinner market.

    A few directions worth exploring:

    1. Some credit unions and specialty lenders do offer HELOCs on investment properties (usually capped around 70–75% CLTV).

    2. A DSCR cash-out refinance — with roughly $245K in equity ($415K value vs $170K owed), you'd have room to pull cash out while keeping the terms reasonable.

    3. If you'd rather not touch the existing mortgage, a second-position line from a private lender is another route, though rates run higher.

    I help investors structure exactly this kind of thing nationwide — happy to take a quick look at your numbers and lay out what each option would actually cost. Feel free to DM me!

    0Reply
  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 202 posts · 65 votes
    23h

    @Aaron Wolman You have a meaningful amount of equity, but investment-property HELOCs are much less common than lines on a primary residence. Good places to start are local Pennsylvania community banks and credit unions, especially institutions that offer portfolio loans and keep the debt on their own books. A mortgage broker who regularly works with rental-property investors may also be able to compare second-position HELOCs, closed-end home-equity loans, and cash-out refinance options.

    Lenders will usually focus on the property’s cash flow, debt-service coverage, leases, borrower credit and liquidity, and the combined loan-to-value after the new financing. With a value around $415,000 and a $170,000 first mortgage, the equity looks strong, but the usable amount may be limited by the lender’s maximum leverage and whether it is willing to take a second lien on an out-of-state rental.

    Before choosing a product, compare the rate, fees, recourse, draw period, repayment terms, and effect on monthly cash flow. A HELOC offers flexibility but usually carries a variable rate; a home-equity loan provides more predictability; and a cash-out refinance may unlock more capital but could replace a favorable existing first mortgage. The best structure depends on how the funds will be used and whether the return comfortably exceeds the added borrowing cost.

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  • Vernon Hills
    Member since 2026 · 9 posts · 0 votes
    21h

    Have you been able to get in touch with private money lenders ? I strongly suggest you contact one, I've worked with a few though and I was really impressed.

    0Reply
  • Tomas Jems
    Technology · NY · Member since 2026 · 6 posts · 1 vote
    7h

    At $170K owed on a $415K property you're around 41% LTV, so you've got real room — most lenders doing investment-property HELOCs cap combined LTV at 70-75%, which puts your usable equity in the ~$120-135K range before you even factor in DSCR-based qualification (some lenders on non-owner-occupied HELOCs care more about the property's rent coverage than your personal DTI).

    Two things that trip people up on rental HELOCs specifically: (1) fewer lenders offer them at all compared to primary-residence HELOCs, so shop credit unions and local/regional banks, not just the big nationals, and (2) rates run noticeably higher than a primary-residence HELOC, so run the actual carrying cost against what you're using the funds for before assuming it's "free" leverage.

    1Reply
  • Justin Tulman
    Lender · Boca Raton, FL · Member since 2026 · 16 posts · 4 votes
    5h

    @Aaron Wolman, this is definitely worth looking at from more than just the traditional HELOC angle.

    With an investment property, I'd first want to understand what you're ultimately trying to accomplish with the equity -"dry powder"

    Are you trying to access capital while keeping the existing first mortgage in place, or would you consider refinancing the existing loan if the overall structure made sense?

    Those are two very different financing conversations.

    With the numbers you provided, I'd compare the available options based on the amount of cash you actually need, the economics of disturbing your existing first mortgage, and how the property performs as a rental.

    I'm a direct lender in Massachusetts and spend a lot of my time with residential real-estate investors. We offer HELOCs to our clients. Happy to help you think through the financing structure if useful.

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