Help me use my equity to scale my portfolio

[Fernando Martin-Gullans]

Hey y’all,

I'm a retail investor with 2 SFH rentals worth a combined ~$650k looking to utilize some of my stored equity to buy more out-of-state properties, but I'm not quite sure how best to proceed given that my interest rates are incredibly low (leaning me away from refinancing) and neither property is owner-occupied (which I believe prevents me from using a HELOC). Here's some context:

Property 1: >$100k in Equity

Value: $325k

Debt: $220k @ 2.88% (30-year fixed)

Property 2: >$70k in Equity

Value: $325k

Debt: $252k @ 3.38% (30-year fixed)

Extra considerations:

- I have $15-20k liquid to use for any of these deals

- My current job is relatively stable, but not high-payin

- Current properties in TX, living in NY, looking to invest in Mid-West (crazy, I know)

- No other debt obligations besides the two mortgages

Ultimate goal/timeline:

Though a bit ambitious, I’d love to build up the portfolio to 10-20 units in the next two years

I understand that any/all replies aren't financial advice; all ideas welcome for information purposes. 
Cheers, 
F. 

[Joshua Bautista]

Just swinging for the fences here

• Portfolio Loan or Blanket Loan: Use the combined equity of both properties to secure a new loan. This allows you to access funds while keeping your existing mortgages intact.
• Second Mortgage: Explore lenders who offer second-position loans on investment properties, though rates will be higher.
• Cash-Out HELOC : While traditional banks often restrict HELOCs on non-owner-occupied properties, some portfolio or private lenders may offer HELOCs for investors.

With $15-20K in liquid funds, look for deals where you can negotiate terms:

• Seller Financing: Negotiate lower down payments or interest-only periods.
• Subject-To Financing: Assume the seller’s existing mortgage while covering the down payment.
• Lease-to-Own: Lock in the purchase price while using rental income to build equity.