HELOC equity automatic?

[Juan David Maldonado]

Is the HELOC equity automatic in the property to use for the BRRR on the next property once you own it? After one year of owning and renting out the property with a tenant.

Today, I spoke with a local bank loan officer telling me that's not how it works. I think it was because her bank doesn't do it.

[Aaron Poling]

I am not 100% sure I understand the question, but will attempt to answer what I think your asking. A Heloc would be an equity line that you could get to tap into equity on a property. Most lenders won't do equity lines on investment properties as they see it as too risky. Not saying that no lenders will, but the lenders I work with won't and I think that is pretty common. In most cases the best option to tap into the equity is to pull a cash out refinance, that would pay off the current mortgage and give you cash above the payoff. In my experience you have to own the property for atleast six months, and they want to loan no more than 75% of value. 

Hope this help! Thanks Aaron