Line of Credit on a Rental when owning 5+ Financed Properties

[Lucas Forschler]

I've peaked around the forum and can't find anything recent that addresses this question.

My husband and I currently own 9 properties, 8 of which have financing. One is a primary residence, 3 are ongoing flips and 4 are rentals. One of our rentals has a value of $550,000. We have a mortgage in place of $225,000 with a very favorable rate (3.50%) which we do not want to disturb. We currently have a HELOC on that property with a balance of $60,000 and an average rate of 4.50%. This property used to be a primary residence - hence the generally favorable financing. So, our current LTV is 52%. We'd like to get a Line of Credit against the rental to use as a down payment for future deals but are having trouble because of the number of investment properties we own. Debt/Income ratios and credit are good.

We've tried First Tech Credit Union (they do LOC's for investment properties but not with more than 4 financed properties), EverBank (same deal - and we have our primary mortgage there), Wells Fargo (doesn't do LOC's for investment properties).

Has any one recently found someone to pull a line of credit for something like this? The property is in Kirkland, Washington, if that makes a difference. 

Yes, we know we could put a new first in place for the whole property, but we like the flexibility of a LOC since we actively buy and sell properties. Plus, we don't want to disturb our current rate. Any suggestions would be appreciated!

Thanks -

Jenn