Leveraging a property you own

[J Day]

I have 9 properties. 6 with note from private investors, 1 with wellsfargo, and 2 I own outright. Can I take money out or someone leverage the two properties I own? Like a Heloc for investment property?

[Jon Holdman]

Not exactly. Freddie, at least, will go up to ten. However, its not easy to find someone to make those loans. They also have quite stringent requirements. Rental income only counts if you're been in the rental business for more than two years. You need six months PITIA (A=anything else, such as HOA fees) reserves for ALL loans. Need to have owned the property for more than a year if you want to use a current appraisal.

Your best bet may be to find a smaller local bank that will do portfolio loans. They may only have shorter terms, like 15-20 years, and may have balloon payments, but there are banks that have more flexible guidelines than FM & FM.