All Forum Posts by: Pauline G.

I own 3 rental properties in cash, all were inherited. I am new to financing. I am aware that it is wise to leverage my equity and invest further so I'm asking for advice. I am a student so I live from the rental income.

One of the properties is a rent-controlled duplex in a high-rent area. I just signed cash for keys deal with a tenant who was paying about 35% of market rents. I need to come up with the cash (25k) by mid-July. I also need cash to rehab the unit (unless I do a 1031 exchange first, which is another option.) I am planning to get a line of credit but I am unsure whether to use the duplex or my 6-unit to secure the loan - is one better than the other? Does a HELOC or CELOC give better terms? I do not live in the duplex, so I've been told I would get a bit of a higher rate than a normal HELOC.

The third property is a triplex I plan to 1031 exchange as it is in an area that is hours away and undesirable to me. Therefore I could use whichever LOC I open to add funds and buy a property closer to where I live. It could be a home to live in or another rental, I'm not sure -- I currently live in a unit and I might need more space soon. Therefore, I am leaning towards a CELOC so that I have a greater ability to secure a personal loan for my own home in the future. Is this a valid line of reasoning?