All Forum Posts by: Joseph Duenas

If you own a property free and clear, you should be able to get a HELOC or business line of credit against it. From my review of rates, HELOCs have better interest rates, as opposed to business lines of credit. As an investor a line of credit is a great tool to have available. Good luck!

@Chris Collins Thanks for the great information! 

Great! Thank you all! 

When analyzing a multifamily rental property, what is a good percentage to use for operating expenses (e.g. 10%, 20%, 30%)?  Thank you! 

@Rick Versace Thank you! Very good advice! 

@Charley C. Thank you!  

I was hoping to get feedback  on business lines of credit  secured by free and clear real estate.   For the sake of this discussion, here's an example scenario: 

 If a person had 5 properties free and clear, valued at $200K a piece,  for a total of $1M (free and clear); how much of  a line of a business line of credit could they secure against the property, and what would be a favorable and acceptable rate the banks  should charge.  

Finally, would banks allow the money from the  business line of credit to be used as a down payment on future mortgages? Thank you! 

Here are a few options to look at outside of a HELOC:

1. Refinance the house and drain the equity. If they deny you a lower interest Freddie Mac/ Fannie Mae loan, ask for a portfolio loan. 

2. If you are looking at a specific property to buy next, ask the lender to use the equity in the property as the down payment. 

For the experienced investors here. If a property cash flows on a fixed mortgage, is it relatively safe to get as many mortgages as possible?  If so, how many will the bank lend and how many are you comfortable with? 

Thanks for the responses.