Suggestions on how unlock more equity with a HELOC

[Joshua Massari]

Hello BP,

I have a scenario that I can't seem to figure out. I have a rental property that has a decent amount of equity ( $450k). I have a HELOC for $94K currently but I am looking for a way to unlock at least another $100k of the remaining $250k. The easy solution is to refi the first HELOC into a larger one, but the issue is that the only banks I am finding to do HELOCs on rental properties will only do 60% LTV. This only gets me an additional $30k. If I lived in the property they would do 85% LTV but I do not live in it and would have to live in it for a decent amount of time to prove residency ( not looking to do this as this rental is very lucrative).

Does anyone know of any banks that would be willing to do a 3rd postion HELOC or refi the existing HELOC with a new one at 80-85% LTV being that it is a rental property?

The purpose of unlocking more equity is to buy more rental properties that are getting me 12-15% ROI. ( I currently have 7 of these properties in a an out of state portfolio).

Scenario ( Property is located in CA ) 

Property Value - $800k-$820k 

First Mortgage - $351k 

Current HELOC - $94k

Monthly Rental Rate - $4,500 

Trying to unlock another $100k-$130k

- Joshua 

864 Upstate Properties LLC

[Kevin Romines]

The best HELOC on a rental is with Pen Fed Credit Union. They will go up to 80% so long as you have no more than 4 financed properties. I would suggest that you replace your existing HELOC with the new one from them.

I hope this helps?