Line Of Credit? HELOC? Cash Out Refi? Need help!

[Mike Finn]

Hey everyone, question for the group. I currently have two rental properties I want to figure out how to leverage so I can start growing my real estate profile. I do not want to leverage a HELOC on my primary residence for reasons I don't want to get into here.

What is the best way to leverage the equity that I have in my rentals? I was going down the path of a cash out refi, but every lender I spoke to said it was a bad idea because the rates are too high. It would essentially kill my positive cashflow.

I was told I could get a HELOC on my rental property. I spoke to several local lenders, but they said no one would give me a standard HELOC on my rentals, but that I could get a LOC (Line of Credit/Commercial Line of Credit) that is essentially the same but with significantly higher rates. Am I understanding that right? Is there something special I am missing?

I know questions like this get asked a lot, but I'm feeling pretty defeated right now. 

[Anthony King]

Quote from @Mike Finn:

@Anthony King Thanks man!

I've thought about selling, but I currently have a tenant in both properties. Have you dealt with that situation in the past?

Actually dealing with it right now. Selling one SFH and doing a HELOC on another. If you're thinking about selling, at the end of their lease put them on month to month and tell them you're thinking of selling and offer them first option to buy it. It's easier to sell vacant or on a MTM lease so the buyer can either move in or sign their own lease with tenant. If you're looking to scale, evaluating your ROE at least annually is a good idea.