Looking to get a Home Equity Line of Credit (HELOC) in MA

[Dan Borecki]

Hi All, 

I have owned my owner occupied 3 family property for around 2 years now, put in a bunch of work on it and am looking to get a home equity line of credit on it while rates are still low and property values are high so that I can use it for a combination of future repairs and possibly to go toward a down payment on my next investment.  

Does anybody have any tips on the process of getting a HELOC or recommendations on lenders to go through? Is it best to go through a local lender with the thought of establishing a relationship for future deals?

Details on the property: 

Purchased for $400K

Renovation costs of approx. $40-50K

Current loan: approx $390K

Estimated value based on comps: Approx. $550K

Based on 80% LTV, house would need to be over $488K ($63K equity line of credit).

Based on 90% LTV, house would need to be over $433K ($117K equity line of credit).

I have essentially no personal debt other than the property and the property cash flows approx $100/month. 

Side note: I have refinanced 2x in the past year and on the most recent appraisal at the beginning of spring, my house was appraised at $500K, but one of my tenants at the beginning of the summer purchased a 3 family almost identical in stats to mine for $540K and based on MLS have seen similar values, so that's how I am coming up with the $550K value estimate.

Thanks!

Dan