Advice on getting equity out of a rental in Washington state

[Matt Nelson]

Hello all, first time posting here. We have a rental in Washington state. It is almost paid off. We would like to take out 90k of equity and the property if worth about 250k. What’s the best route to access the equity from the rental? Thanks in advance.

[Carlos Valencia]

Hi Matt, 

Depending how much you still owe it might be better to do a cash-out refi because it will be a little better in pricing in terms of rate as an investment cash out refi. Especially now with rates dropping the pricing will be better. Cash out refi will let yo go up to 75% LTV allowing you to get that extra 5% compared to a Heloc. Helocs on investment properties typically can go up to 70% CLTV. Helocs rates are much higher too like in the 10%-13% rate. While investment cash out is more like in the mid to low 7s. I would look into both options to see which is best for your scenario.

@Albert Bui  @Matthew Kwan