Using HELCO from portfolio to fund new Tri-plex renovations

[Matthew Addison]

Hello,

I'm buying my third Multi-family and will be closing this July 2022. All my properties (3) have been funded by VA Home loan. This will be my first time trying to use my equity to fund renovations. My goal is to take out a HELCO from my first rental property which has about 170k in equity. I want to use about 20k to fund the renovation on my new property.

My questions:

1) After I finish renovation in about 6-12m do I complete a cashout refinance on the new property and take the profit to pay back my HELCO? 

2) I'm closing on the triplex at 650k. How much do i need the property to appraise for to be able to pay back my HELCO?

[Erik Browning]

@Andrew Garcia someone on another forum put THIS LIST TOGETHER with a comprehensive list of lenders/banks that offer investment property HELOCs. The list is the best I've seen, but it is also not up to date 100%. For example Spring EQ had an investor HELOC for like 2 months and then took it off. Spring EQ does offer HE loans up to 90% LTV however. Some investors may be interested in that. The list is also a lot of banks that only operate in certain states.

@Matthew Addison you can also utilize a VA renovation loan - I did one myself and loved it. You will need to find a broker up there in Washington that can help you with the renovation loan. There are some steps you need to take, as well as the contractors, but you can wrap the renovations into the loan without additional fees for financing. You can see my post about it HERE if you'd like a general overview. Good luck!