Equity Lines on Rental Properties

[Brian Baker]

Hello BP Community,

Have you had experience with equity lines of credit on rental properties? What kind of qualifications do lenders use for them? Are they harder to establish than lines of credit on primary residences? How did you go about finding lenders that would set one up (I know many traditional lenders won't)?

[Mike Dorneman]

@Brian Baker that’s the BRRRR 😁 Nearly all of my rentals are leveraged with HE lines or loans which I then use to buy the next property, then repeat. You’ll find that your local bank can and will get thesenloans done for your quickly. (Assuming you have a good Debt to Asset ratio personally and high credit score. The loans I get are all commercial, with a personal guarantee. One benefit here is a single credit pull / application. Meaning I only need to submit my personal financial statement every 6-8 months and that’s it. No additional credit pulls or applications. This is great for me because I’m averaging a property / month so going through all that paper work and hoops would be a major pain.