Can I use a HELOC on a property that's not my primary residence?

[Terrance Lee]

I currently have a townhome in the Fort Worth, TX area that I've been renting out to the same tenant since 2011. Current value is around $130K and I have $69K that I owe on the property. I would like to start investing in multi-family properties, starting with duplexes. Instead of selling my townhome and using the cash to fund my next deals (my assumption is a sale would leave me with a profit of between $50-$60K depending on final sale price, fees etc.), I am considering using my equity instead via a Home Equity Line of Credit (HELOC) to fund the next deal. That would allow me to keep my current property (which has been appreciating nicely..) and buy something else.

My issue has been that every bank and credit union I've contacted has stated that the home needs to be my primary residence in order for them to consider a HELOC. Does anyone have any suggestions on how to approach this, or know any good sources that issue HELOCs on investment properties? Or do you recommend another funding option other than a HELOC?

Thanks!

Terrance Lee

Dallas, TX