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Updated over 5 years ago, 05/28/2019
Equity Line of Credit for Rental Property
I am a new landlord, as of December 2018. After a few months of being a landlord, I feel confident in expanding my business to a couple more properties. However, like most new investors, getting financing is a challenge. I purchased my house in 2016 and lived in it until 2018, renovating it throughout the years until I was ready to rent it. I estimate that I have between $50,000 - $70,000 in equity in the house that I want to use. However, I have found that banks do not want to give lines of credit to rental owners. What is the best way to find an equity line of credit on a rental property in? My current rental is located in south Kansas City.
I looked into refinancing my home, however, the profitability in my current property would errode significantly. The money I would be able to get out of a refinance would not make up for the loss of profitability on my first rental (assuming I purchase two more homes having a total of three properties). When I purchased my home, I did not have the BRRRR strategy in mind, as I was not looking to rent it out at that time.
To restate, what is the best way to find an equity line of credit on a rental property? I would also appreciate contacts of potential investors as well if you have them.