Conversion of Blanket Portfolio Loan & Rental Property

[Brandon Sturgill]

I currently have a blanket loan using my main residence as collateral to rehab another property. The loan is currently 80%LTV of both properties and includes a line item for construction.

My ultimate goal is to occupy the rehab and retain my residence as a rental. In order to do this, I would need to "carve-out" the residence and basically split the properties under individual mortgages...any advice on how to make this happen?

Details:

Property 1 appraised $122k/ Property 2 appraised $132k (loan is 80%LTV on $254k)

Construction loan $35k

Loan structure is a 1/1 ARM