Second mortgage on rentals

[David Greene]

Was wondering if anyone hear has taken a second mortgage (Heloc, loan, etc) on a rental property and reinvested the profits to get a better return without having to sell the property. Any success stories?

[David Greene]

Hey Tim, 

sounds like a good idea. If you can buy the properties low enough you can theoretically keep that ball rolling infinitely. I actually have 150-200k equity in 5 different properties but it looks like the market has more room to go up still. The plan is to take out a HELOC on each one, use that money to buy notes, and significantly increase my rate of return w/o having to sell the homes and miss out on the potential increase in prices. The tricky part is finding a bank/finance institution that will lend on investment property. Helocs can be as low as 3-4% right now. Hoping someone out there sees this and has been in a similar situation.