HELOC on Rental properties - Myth or reality !!

[Tejas Shah]

Hello all - I am sure i am not the first one to think about this, but is getting HELOC on rental properties not a thing anymore !!

I have about 7 units (mix of commerical and residential) with good cash flow on all of them. My business partner and I have spoken to about 5-7 different lenders (including one from BP) who have declined HELOC for one or the below reason

- Simply, dont do HELOC on rental (false advertising)

- They want to be primary lien on the property (not sure how that is possible). I currently have a lender and my rates are pretty good (sub 5%). 

I am looking at guidance on  

- Am i looking to getting into unchartered territory here !

- Are there any lenders (national or local to Philadelphia/Pennsylvania) who can help with HELOC on rental properties. Note: I am not looking to move my primarymortgage from my current lender.

[Jen Stekkinger]

FYI: I am hearing some talk about banks tightening up on lending right now and some have even suspended HELOCs becuse of a bank crisis going on with smaller banks. (Main stream media is not reporting this) Many smaller banks willing to do HELOCs are getting bought out or merging with larger banks and this may be impacting lending.