All Forum Posts by: Matthew Addison

@Andrew Garcia someone on another forum put THIS LIST TOGETHER with a comprehensive list of lenders/banks that offer investment property HELOCs. The list is the best I've seen, but it is also not up to date 100%. For example Spring EQ had an investor HELOC for like 2 months and then took it off. Spring EQ does offer HE loans up to 90% LTV however. Some investors may be interested in that. The list is also a lot of banks that only operate in certain states.

@Matthew Addison you can also utilize a VA renovation loan - I did one myself and loved it. You will need to find a broker up there in Washington that can help you with the renovation loan. There are some steps you need to take, as well as the contractors, but you can wrap the renovations into the loan without additional fees for financing. You can see my post about it HERE if you'd like a general overview. Good luck!

There's no need to do a HELOC on the first rental property for renovations. Make the bank pay for renovations. Tell the bank you want a 12 month construction loan on the new property and include both the purchase price, as well as renovation costs. Usually you can get interest only for first 12 months during renovations. Then after 12 months, the bank will convert your construction loan into long term financing, whereby you pay both principal and interest. They will probably do a new appraisal after the renovations. By then, you have hopefully rented out units and/or raised rents to reflect your renovations and created what's called "forced appreciation". Don't ever offer your cash or equity to the bank, always ask to borrow it first. The only risk I would consider here is the possibility of rising interest rates 12 months from now.