HELOC on investment property

[Sky Lin]

I have a property is free and clear and I want to get HELOC out to buy one more property to do short term rental to avoid closing cost with refinance. I have been visited few big bank and Credit Union locally in Phoenix AZ area, and they don't do it. my question is does anyone know any bank does HELOC on investment property? Second question is what should I say to them when I apply for it? Should I tell them this is for my next short term rental investment, or what should I say to them?

I never done this before, so any advise will be appreciate. Thanks

[Andrew Postell]

@Sky Lin I saw you have a suggestion already but Bigger Pockets also has state specific forums. Try posting in the Arizona forum next time if you need something local like this. I've heard good and bad about Penn Fed. In general, you would likely find this loan through a smaller, community bank. And try using the term "Line of Credit". It's a small difference but Lines of Credit are usually handled in the commercial department and HELOCs are in the residential department. And often times the two don't even talk to each other. So if you ask for a HELOC, get transferred to the residential department, they might tell you "no" even though the commercial department would write a Line of Credit! Had it happen. Just use Line of Credit and try in the Arizona forum if you need. Good luck!