Options for pulling equity out of rental property for purchase

[Anthony Alexander]

I just got wind of a 4 unit property that hasn't hit the market yet. I don't have the cash required, so I'd have to finance. I'm looking at what options I have to pull equity out of other rental properties I have.

Does anyone know of investor-friendly lenders that service the San Antonio / South Texas area and will allow home equity loans or HELOCs on rental properties? I'd rather not do an entire cash-out refi because I have a much better rate on the property than I could get today.

With a 70% LTV planning factor, I'd still have plenty of room for the cash I'm looking for to make the down payment (~125k).

Thanks for any help/advice!

[Brandon Croucier]

Hi Anthony, I can service a investment property heloc however it might not be the best solution. Rates on these investment heloc's are 12-15% right now... You might just be better off doing a cash out refinance.

[Erik Estrada]

Quote from @Anthony Alexander:

I just got wind of a 4 unit property that hasn't hit the market yet. I don't have the cash required, so I'd have to finance. I'm looking at what options I have to pull equity out of other rental properties I have.

Does anyone know of investor-friendly lenders that service the San Antonio / South Texas area and will allow home equity loans or HELOCs on rental properties? I'd rather not do an entire cash-out refi because I have a much better rate on the property than I could get today.

With a 70% LTV planning factor, I'd still have plenty of room for the cash I'm looking for to make the down payment (~125k).

Thanks for any help/advice!

You may be able to do a stand alone DSCR based second mortgage. Lenders will factor both the 1st and 2nd mortgage payment to calculate the DSCR. Rates will be in the high 11s-12.5% Range

[Jacob Sherman]

Helocs are tough to get on investment properties but can look into cashout refinance options on your investment properties upto 80% 

[Raymond J. Rodrigues]

@Anthony Alexander,  I might be able to share some lending resources with you in the area that can assist you with your scenario. Feel free to reach out. Happy to share some knowledge.