How do I pay off LOC without refinancing existing mortgage?

[Brian Leigh]

Hi Everyone! I recently finished up my first SFR rental property in Fayetteville, NC. I purchased the house using a 15 year term 7/1 ARM at 3.85% APR. I financed the rehab using a 7.5% Interest Only Line of Credit. The property and loans are in an LLC and need to be kept that way because of restrictions in my current W2 job. How can I pay off the line of credit while still keeping the original mortgage?

Best estimate is 80% LTV when you include the LOC. I say estimate because I have not had the property reappraised since the rehab was completed and I am using recently sold home prices as my benchmark. Also, it has been 6 months since I purchased the property and I have had it rented for two months.