Taking out HELOC on houses on leased land?

[Molly Morlino]

I couldn't quite decide where to post this... Please move it if necessary!

We just built our first two rentals (see here).  They will be rented this week for what we asked - $1095/mo.  Great return on investment... we are VERY excited!

Anyway... They are built on land that we are leasing from my parents.  We are paying approximately $220/mo for both homes.  These are not individual lots, it has never been subdivided.

My question is... and I think I know the answer, but I want to check... Can we pull a HELOC on these homes even though we don't own the land?

We have a legal lease that we can produce.  The homes are valued at about $65k without the land (we built them for $40k) and we own them outright - no mortgage or debt.  We both have excellent credit in the 800s.

We also have about $130k in equity in our primary residence, which we will take advantage of.

We're not in a huge rush... I need a minimum of 6 months to recharge, as I did most of the work myself (my husband worked on weekends).