Paid off rental duplex in LLC - how to use it to finance another?

[Mark Nocny]

Hi,

Here's my situation:

1) My mom inherited a fully paid off duplex with tenants in Florida - not the best property, not the best hood, not the best tenats... but never look a gift horse in the mouth!

2) Mom does not live in FL and knows absolutely nothing about RE, she is overwhelmed with whole situation and wants me to take care of it

3) We put the duplex into an LLC and made me a sole manager of it - I live in the area and always wanted to get into RE business. I have eagerness, good credit score, no cash and little knowledge about RE

4) So far the rental business has been going good with some expected learning curves and I want to make next step - get more properties

And here comes my question:

How can I finance new purchase using existing property? It's in newly formed LLC that hasn't even filed a tax return yet.

The house is probably worth about 120-150K, produces steady income and has no loans against it. Regular HELOC won't fly - b/c rental in LLC. I'm sure there is a way to pull out some equity from it to expand the business - but I don't know how.

Any ideas?