New Investor in AZ Need Advice on Financing Renovation

[Andrew Dennis Ortiz]

My girlfriend and I are new to real estate investing, living in PHX AZ. We both currently own 2 SFH's that we both have over 20% equity in. We just started renting out one of them and we are living in the other one. We just purchased a 3rd SFH using conventional Fannie Mae financing with 5% down. The house needs a full interior renovation and our plan was to renovate it, then move into it and start renting out the SFH we are currently living in. We thought we could use a HELOC or Home Equity Loan to tap into the equity we have in the 2 SFH's we own to fund the reno, but we have found out that sine one is a rental property already and our intent is to rent the other one out, that all the banks and credit unions we have talked to won't do HELOC or Home Equity Loans backed by these properties. Our long term plan for the new SFH is to live in it for a few years and then eventually rent it out as well, but we would like to do the reno now, so that when we are ready to rent it, it is ready to go. In hindsight a 203k loan or something similar might have been the way to go, but we did not realize we weren't going to be able to use a HELOC to fund the reno. We are looking to finance about 60k. We both have great W2 income, great credit, great DTI, but limited cash reserves at the moment. We are thinking cash out refinance is not a great option because we refinanced both SFH's when the rates dropped real low to 3% and 2.75% so we would be going way up on the rates to pull out that cash.

Is there a product or a bank/credit union that would be able to give us the home equity loan or line of credit against the SFH's we own? Is our only option to go with a personal loan to finance these renovations? Is a commerical lender an option? We do not have an LLC set up. We have reached out to Truwest, Bank of the West, US Bank and Lending One and all of them could not help us.