All Forum Posts by: Taylor Pyburn

Can anyone give me the secret sauce to finding a HELOC / LOC Lender for an owner-occupied duplex? I do not want to refinance with current rates but would like to utilize a small portion of my equity. I've emailed 50 lenders, specifically Credit Unions with absolutely no luck.

Currently sitting on 200-250k of equity with no access. Would love any tips you have for finding the right lender!

2 Votes

Nashville, Tennessee

Quote from @Christopher Sarmiento:

I have a question for the Biggerpockets community. I’m trying to decide what the best option is for me with the Market and the rising interest rates.

I bought a duplex for 410K June 2021. My goal was to Remodel it and do a cash out refi to get all or most of my capital out. The top unit was a 1/1 but now a 2/1 with central A/C. I redid the kitchen, bathroom, interior paint, and floors. Bottom is a 3/2, but I think I can create another bedroom to make it a 4/2. Redoing the floor, paint, bathrooms, and kitchen. It has a Carport that can fit 2 cars and I’m creating extra space in the backyard to fit an additional 3 cars. The current Zestimate is 579K and I live 4 houses from the intercoastal. I’m hoping it will appreciate to 600k at minimum once everything is finished and if it appreciates more than that then I’ll pocket some cash. I’ll probably have 75K of rehab cost in this Duplex. I wanted to Cash out refi by late may early June, once my rehab is complete. My current interest rate is 3.25%. I can rent the bottom unit for $3,000 as is, hoping to get $3,200-$3,500 for rent once I finish my Rehab.

With the rising interest rate would a Cash out Refi be beneficial? So, I can get all or most of my money back from the initial capital and rehab cost. I’ll have a higher interest rate with this, increasing my monthly mortgage and fees.

Or would a Heloc be better? I'd get to keep my current interest rate and get a credit line from the forced appreciation of the property. I'd use that to pay for my Rehab cost and just pay the monthly fee from using the HELOC until I pay it off. Would saving money on my monthly from a lower interest rate help me out more than refinancing to a higher rate to get cash out to pay off my rehab.

I just want to know if I’m processing everything right, or if I should be thinking about something else.

Chris

I'm in the exact same situation in Nashville - looking to access my equity on a Duplex without compromising my interest rate from 2020. Have you had any luck finding a lender who offers a HELOC on multi-family?

0 Votes

Saint Petersburg, Florida

Thanks Slaiman! I started to reach out to some Credit Unions and larger lenders this last week but looks like HELOC / HEL options are becoming a little more scarce or harder to obtain - specifically for my Multifamily situation. Inherently this is tied to the Federal Reserve rising interest rates. Good point on the processing time, will definitely keep that in mind.

Thanks Luka, will be reaching out!

0 Votes

Nashville, Tennessee

Can anyone suggest any Lenders in the Middle, TN area, or National Lenders that will offer a HELOC or HELOAN on a owner-occupied Duplex?

I purchased this Duplex in East Nashville in 2020 for $280k, which initially appraised for $320k. I owe $250k on the property currently.

We remodeled both units, one is 3/1 the other is 1/1. I currently occupy the 1/1 and rent the 3/1 to cover the mortgage.

My current mortgage is through Mr.Cooper, which is evaluating the property around $475-500k. Looking at market trends this seems to be accurate.

I have an excellent rate on this Mortgage, at 2.75% and would like to keep it the same without doing a Cash-out Refi and doubling this rate.

Who should I reach out to and what should I have prepared to get a Line of Credit on this large amount of equity I'm sitting on?

Any help is greatly appreciated!

0 Votes

Nashville, Tennessee

I'm also looking for a Fannie Mae Homestyle Renovation Loan in Nashville, TN - Have you had any luck in your research?

0 Votes

Very Impressive @Devan Mcclish !!!

0 Votes

All Forum Posts by: Taylor Pyburn

Taylor Pyburn has started 2 posts and replied 7 times.

Post: Any Lenders for HELOC / LOC on Owner-Occupied Multi-Family?

Post: Any Lenders for HELOC / LOC on Owner-Occupied Multi-Family?

Post: To Heloc or Cash out Refi after a potential BRRRR

Post: Any Lenders for HELOC or HELOAN on Owner-Occupied Multi-Family?

Post: Any Lenders for HELOC or HELOAN on Owner-Occupied Multi-Family?

Post: Homestyle reno mortgage in TN?

Post: Step by Step rehab with none of my own money