Have a maxed out HELOC and Low-Income - Where To Start?

[Christine Seeley]

I'm wondering how to get started...

I'm almost 57 years old and next to no money to invest. I've owned a duplex for the past 14 years that I live in and rent out the other half. I started out with 2 mortgages on it. The 2nd is a HELOC that I've been paying just the interest on (I felt desperate at the time when I accepted those terms).

The past few months I began to make double payments on the HELOC. My income is very low. I have a very part-time job and am also self-employed part-time. So, taxes show my income as too low for a loan. I'm thinking a Home Equity loan with bank statements for verification is the way for me to try and go. And possibly through FHA? I'm not sure what to do about the maxed out HELOC, but I am feeling like I need to do something about it. I'm thinking I'd like to find and buy a multi-unit out of state that I would move to, and rent out my half of the duplex here in Michigan.

My duplex is worth about 165k on Zillow (but I hear Zillow is high). My guess is that it's more like 135k. First mortgage balance is about 69k, and the HELCO is about 12K. So I hope to get out enough of the equity to use as a down payment (and maybe a little rehab) on the next property.

Prior to owning my duplex, I had several single-family homes that I rented out. But I've been out of the RE loop for many years. I want back in!

Thank you for any and all responses!