Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Creative Real Estate Financing
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 7 years ago,

Account Closed
  • New to Real Estate
  • Lakeland FL, United States
8
Votes |
17
Posts

HELOC on a LLC owned investment property? - HELP!

Account Closed
  • New to Real Estate
  • Lakeland FL, United States
Posted

Please help a newbie out! I would love some help and/or advice on my next step. Here's my situation: My partner and I own a single family home through our LLC and bought it outright, all cash deal. We paid $303k last year for it and just got an appraisal back at $346k, which is in-line with what we were expecting. Rental income is $2k/ month and our cash flow is $1,685 after tax, HOA, and insurance. I feel we're in a great spot given the equity, cash flow and not having a mortgage. Our area is hot right now with new builds popping up everywhere, A+ school district and a ton of fun things to do for families..

But... I'm having trouble finding the 'best' strategy for our next step. I understand I can't take out a HELOC due to the property being in a LLC (and we do not want to change the title) so here's my thinking. Pull out cash from the property via commercial loan and use it for the 20% down payment on a second property, then finance our second property via the commercial loan route since it will be coming from our LLC. My goal is to not use any cash, or very little, out of pocket. I understand then I'll be paying two loans essentially, one for the down payment and the other on the mortgage. There are other properties for sale in the same neighborhood, at the same general price-point that will get similar rental incomes that we have now.

Am I on the right track or way off? I'd love to hear some examples of what you all have done in the past or other strategies I'm not aware of. Any and all advice is welcomed and I thank everyone in advance.

Loading replies...