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Updated about 12 years ago on . Most recent reply
How can I use leverage to increase my duplex purchases?
Hello,
Background:
-I own a duplex in Florida that I purchased for 65k cash, so the property is free and clear. I have owned it for 6 months in the name of my LLC.
I -am thinking down the road about slowly adding more properties in the price range of my first purchase (roughly 30k a door/rents 700).
Problem:
[b]-Any suggestions of how I can take equity out of my initial purchase to fuel future growth?
-Every bank I have spoken to will not allow me to take a HELOC on my investment property because it is owned in the name of an LLC (I am unwilling to take the property out of the LLC for more favorable lending terms and will not own the property in my name with an umbrella policy).
-I am also reluctant to take out purchase loans for each additional property I purchase because of the relatively high origination costs vs loan amount and because I can only get commercial terms for the property owned by my LLC.
Thanks.