Unfortunately, Texas has a law prohibiting HELOCs on rental properties and I believe they also have a 70-75% max total loans allowed on the property which cuts into the equity I've built and would only allow for me to access 30K which would make it less appealing to go through the process for only 30K.

I plan to put two duplexes on the property but with this high appraisal is there a smarter thing to do to pull that money out of it or just use it for better collateral for the construction loan most banks will lend on the transfer price within a seasoning period. we face the same issues for land entitlement and development.

While I don't know your family situation and if moving is a possibility for you, but you may always rent out your current home and move into the newer one with FHA loan (putting 3.5% down). 

Great tools that get updated regularly.I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.We are all here to help you learn and grow.

Hi @Will Newmiller - I bought my first 3 properties with conventional 20% down loans, using funds from my business and loans from my wife's TSP.

Securing loans with a low credit score is possible through private or HM lenders.

If you are seeking an actual private lender or direct HML (as opposed to a third party broker) for an investment property transaction (not a consumer loan), there are numerous ways to identify them... consider starting your search here: https://aaplonline.com

But then on the positive side you've got the amortization of that loan, the tax benefit of depreciation and whatever appreciation there is.

I entered interest only for the loan.

BUT, If you do not plan on refinancing your loan in 1-5 years, then you could get better pricing on a DSCR loan.