How can I tap into equity of a rental property?

[Account Closed]

I own a property free and clear that we just moved from 5 months ago. It is currently rented out. I have contacted a few lenders who say I am not able to obtain a HELOC or 2nd mortgage because I do not live there anymore.

Is there a way for me to tap into the equity? The home is worth about $150k and I am looking to obtain as much as possible for an investment.

Thank you!

[Matt Lavinder]

You'll probably want to do what is commonly referred to as a cash out refi. I've done a lot of these with local banks. They'll do an appraisal and finance 70-80% LTV depending on the strength of your finances, etc. The local banks seem to have more capital than they have good borrowers to invest in. If you own a property out right, you shouldn't have a problem finding a lender. Expect a +/- 5% rate. They will all be arms and the lengths differ widely among lenders.