HELOC or Line of Credit for Investment Property

[Todd Leicht]

Anyone know of a lender that offers lines of credit on investment properties? My situation: I have one rental that was my personal residence before getting married and moving into my wife’s house. Consequently, the rental has a very low interest 1st mortgage at 3.75% and a 2nd at 7.5%. I’d like to keep the low interest 1st and just take out a HELOC to pay off the 2nd and have access to the equity on the rental to purchase more investment properties. Most lenders only offer a cash out refi which would require me to pay off both notes, wiping out my low interest 1st and resulting in a higher net interest rate.