Anyone ever used equity from a co-owned property?

[Kaylyn T.]

I'm looking for any advice on how to use my equity from a property I co-own. It's a single family house, and I would like to use a HELOC for re-investing purposes but I do not want to have my co-owner be responsible for the loan. I can take out the heloc in just my name, but it ties up all of the equity in the property because only one line of credit can be taken on the house. My co-owner will also need to sign paperwork to put a lien on the house due to the Heloc and he will be responsible if for any reason I'm unable to pay it back, like I get hit by a bus and can't work or something. One never knows.

Is there anything I can do - create a contract for example - that would not hold my co-owner responsible if something did happen? Any way around this at all so that I might be able to use the equity? They are personally ok with me using it, but I need to make it clear that somehow he will be ok if something did happen.

Has anyone ever been in this situation? Any advice is greatly appreciated! Thank you, Kaylyn