All Forum Posts by: Andrew McManus

As promised, here is what I am finding as I email and call all of your suggestions:

1. Regions Bank will do home equity loan on a rental but not a line of credit. They can’t help me in CA because they are not regulated there.

2. San Diego CU have me a flat “no”

They will loan on a 2nd home, like a vacation home, but not a rental.

3. U.S. Bank was the same answer as San Diego CU

4. Huntington Bank will loan up to 75% LTV on a rental, but only within their footprint of branches so they couldn't help me in CA.

5. TD Bank gave me a “no” also

6. CMG Financial will loan up to 70% LTV on rental properties

7. PenFed will loan up to 80% LTV on rental properties according to their website but I haven't talked to anyone yet.

I’m also discussing options with a couple of BP members that have reached out offering to help. I will report back once I make a decision on who to use.

Thanks again for all of the input!

I really appreciate all of the leads everyone! @Kyle Tipton, I haven’t made the inquiries yet, but I will this coming week. @Carlos Tavares, the property is worth around $400k and I owe about $170k. I assume I'll be able to get a line of $110,000 if a 70% LTV is the requirement or close to $150,000 if I can get a loan based on 80% LTV.

@Kyle Tipton no luck yet, but I’ve been really busy with my day job so I haven’t exactly been pursuing the info I got here on BP yet. I’m going to work on it this coming week and I’ll report back

@Kevin Romines Thanks Kevin!

Does anyone here have experience getting an equity line of credit on a rental property? I have about $200,000 equity in a rental property in California and I currently live in Colorado. I’m getting shot down by every local bank and credit union that I call. The banks i called in CA won’t loan on non-primary residences and the CO banks that can loan on rentals can’t use a CA property. Any lender referrals would be appreciated.

Thanks!

Thanks for the input Bill, I appreciate it

Hey everyone!

I am looking to raise some more capital to invest in more property and I need some advice from some of you veterans since I am really new at this. I owned a home in CA that I lived in for 15 years and I then moved to Colorado and bought a home here that I live in. I rented the house in CA when I moved and now it cashflows around $175/month. The mortgage balance is $173,000 and it has been appraised at $394,000. To utilize the equity from that house on new units, would it be smart to sell it and use the profit instead of doing a refi and pulling out the cash? The cashflow is ok now, but if I refi to a higher amount and pull 125-140k out, the cashflow will be negative. I realistically can't rent the house for more than $1,800/month. It may be obvious to some of you what the plan would be, but not to a newbie like me. Is a HELOC an option for something like this? If you were in this situation, what would you do?

Thanks in advance

Andrew

I really appreciate the perspectives from all of you. Definitely some more food for thought. Given all of the advice and some more thought, I may just bite the bullet and buy in CO. 

@Matt M. no real estate market just keeps going up forever. Sooner or later, inventory will catch up with demand or other economic factors will level it off. Real estate markets that have home prices doubling in less than 5 years are not sustainable. I lived through this type of thing already. I bought my CA house in 2002 for $144k. By 2007, it was appraised at $460,000. Only to drop to $190k by the end of 2008. Now, it's around $325k, right where it should be.  The thought at that time in CA was that it would continue forever too, but it didn't. It was bubble, just like Denver is now. The bubble may still be getting larger, but it's still a bubble. 

@Samuel Pawlitzki  I have also considered that as an option.  It is just that none of the options that I have considered our jumping out at me as definitively the right decision.  Refinancing the existing mortgage in California instead of paying it off sounds like a way to kind of land somewhere in the middle.  I will have a much lower payment for the mortgage, while retaining some cash for a down payment here in Colorado.  This may be the direction I choose unless I can find a strong argument otherwise.