HELOC on Rental Property

[Michael J salemy]

I have two rental properties and a primary residence. My two rental properties my wife and I have on 15 year fixed mortgages and are about two years into it. They are in the Tampa market. They have a significant amount of equity in them.

My primary I moved into at the end of February of 2021.

Does anyone have any experience with getting a HELOC on their rental property?

I am looking for input and the good, bad and ugly. 

Thanks,

Justin
 

[Jody Sperling]

I have a first lien HELOC that covers two of my rentals. Working with a local bank in my city, I was able to get 75% LTV, and the appraisals are VERY conservative, but for me, it's well worth it because that line of credit is my savings account, my checking account, my home for all money storage.

The line fluctuates vastly, sometimes with as little as $15,000 in reserves, sometimes as much as $175,000 in reserve. I attribute my growth from a net worth of $85,000 to a net worth of $560,000 in 18 months to the HELOC. It allowed me to be aggressive and conservative at the same time so I could pursue more real estate deals.

You may have to work hard to find a product that works for you like mine works for me, but if you find it, it will change your life. I don't say that hyperbolically. It will change your life. Best of luck!