HELOC on rental property ?

[Alex S.]

About to purchase a property that I will use for rental. Property has a value of $137K and only 46K is owed.

• 1) I was thinking to pay off the $46k, then get a line of credit and reimburse my cash from the line of credit, then have the rest of line of credit in case I need to use it at later date.
• 2) Or do a quick claim deed, and then take out a line of credit. However if I did it this way, the due on sale clause could kick in, since I will be taking out a second (seller is ok with keeping existing mortgage in place, which will still be in their name)
• Also I want the property in my business name and not my personal, not sure if that will affect applying for a HELOC. A lender friend of mine told me to buy the property cash and in seven days she could get me about 90K loan on property. But I don't want a loan that I am paying on, even if I am not using the funds. With HELOC I only pay on funds that I use.

Anyone have any suggestions? Usually I just buy and sell, I want to keep this one, but want my cash back out, with access to a line of credit. Just not sure the best way to structure deal.