Equity from Duplex

[Kristi Johnson]

Hi, we have equity in a duplex rental and I’m trying to figure out how we can use some of that cash to rehab another property.  We’d love not to refi bc we have such a low interest rate.  Is there a way to take out a loan against the equity in an investment property?  Or is there another strategy that makes sense in this situation? 

[Joe Morello]

Cross-collateralizing is also another option. If you're looking to purchase another property, Use the total value of both properties to increase the total loan amount towards the new property purchase. A private lender would look to the equity in both properties combined, placing a 2nd mortgage on the existing property and a 1st mortgage on the new property. 

Happy to assist!