HELOC Question

[Arcinio Arauz]

I inherited a house and have a question concerning obtaining a HELOC.

The house is in great condition. It was my grandmother's home and I plan to keep it as a rental. When doing a search on her debt, I found she had taken a 100K ELOC against the house. Two others were previously taken but were paid in full as I saw a full reconveyance for the two. Thus, the one 100k ELOC is still open. She passed in 2011. The bank (B of A) hasn't issued any NOD. I would like to pay it all back through the rental income but I need to make a few small repairs and clean it up.

I was wondering...is it possible to obtain an additional HELOC through a different lender given the house is worth 240K. I would to use 40K for repairs. After repairs, I know I can rent it for it $1200, allowing me to pay back the first ELOC while paying my second HELOC which would be in my name. BTW.... The original 100k ELOC is under my grandmother's name. The house is now under my name.