HELOC on investment duplex

[Aaron Bashore]

Hey everyone. I bought a duplex with cash in Memphis for $78k and spent $13k to fix it up. It rents for $1,400 total. I would like to pull out my cash and do a BRRR in Toledo.

I have been told by my lender that I need to wait 6 months to do a cash out refinance. That would require me to wait another 4 months to get into my next deal. 

Does anyone have some advice? Could I or should I do a HELOC on an investment property?

[Charley C.]

@Aaron Bashore HELOCs are from the home you live in. not the duplex you rent out. Unless you live in half

I have not for a very long time seen a heloc on non owner occupied.

I think what your loan officer is pitching is called a cash out, its a finite amount of money you take out, not line of credit on real estate (at least not conventional) 

Either way, if he is allowing you to pull cash out to do another deal 6 months later??? that quick is super fast and I doubt he can deliver on that at face value; unless this is a small agile community bank.

if you got a lot of alternate income from other sources, then a local small (very small) bank might have some good ideas for you, try it with them. Under 100,000 is like a credit card bill with a fixed rate of about 6%. so you might not even need a real estate loan . they might just have you pledged a second position on the duplex if they are smart enough to figure that out.

Go get em