Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Real Estate Investing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 3 months ago on . Most recent reply

User Stats

7
Posts
2
Votes
Stephen Hood
  • Denver
2
Votes |
7
Posts

Advice on selling to access equity

Stephen Hood
  • Denver
Posted

I have a current rental in Denton (3Bed, 2 Bath) that rents for 2,250/mo.  My Tennant is moving out next month and I am considering selling vs holding.  The problem I have about 120K of equity in the house that I would like to be able to access to put into some multifamily deals. However, with this being a rental property out of state, I have found it almost impossible to access any of this equity.  I have a 2.75% 30 yr loan on the property that is hard to give up. It cash flows gross $400 max and about another $450 goes to principal each month.  If I were to sell, I would look to buy another multi-unit property in a smaller town in the $100-120K range that cash flows $400. I just did a deal like this a few months ago on a triplex for 115K that is cash-flowing gross $600. So I would like to be albe to use this cash on 2 more of those deals.  Any thought are greatly appreciated

  • Stephen Hood
  • Most Popular Reply

    User Stats

    482
    Posts
    766
    Votes
    Matthew Kwan
    • Lender
    • Seattle, WA
    766
    Votes |
    482
    Posts
    Matthew Kwan
    • Lender
    • Seattle, WA
    Replied

    HI Stephen,

    You can always open HELOC or line of credit from your primary house or non primary house, assuming you have sufficient equity and income to qualify. You can obtain up to 90% LCTV for your main primary house that you are living or 80-85% for your investment properties. Rates are typically higher than a traditional cash out refinance, however at least you are not getting the full loan amount + you have the flexibility to draw/tap in the money whenever needed.

    @Carlos Valencia @Albert Bui

    Loading replies...