Also, if your rentals are already in service and the banks are using a blanket 75% of gross rents figure, theyre probably incompetent in their underwriting.

The portfolio of homes would do a lot better if the rates weren't trash, and since they are a bigger pockets member they became aware that you can wrap up a bunch of single family homes into a single commercial mortgage (sometimes called a "Blanket Mortgage"), generally if they are geographically concentrated.

My mentor once told me that when he really got sold on the RUBS system is when he went into one of his units in the heat of the summer in Texas and the guy had the AC on 60d sitting on the couch w/a blanket.  

The minimum loan amount is $50k, but it must be under a blanket mortgage.

@Tyler Kesling   Fannie/Freddie do not have a "blanket loan" product.

I have some clients who are brrring out properties and are able to pick up a couple at a time, and refinance in a blanket loan, get out most if not all of the money they put down on the original hard money/rehab loan, rinse and repeat.

I agree that LP's need to know the risks of their investments, but you can't provide a blanket argument that anytime LP's lose money that it is their fault for not knowing the risks.

The issue that I'm facing now is whether I want to pull it out against one of my rentals or on my primary.I have found a bank that will allow me to borrow as a second lien on rentals but their rates are higher than what I could get when just doing it against my primary.What I'm most worried about is what happens in a worst case scenario, should something drastic happen in the market.From what I understand, using the money against a rental doesn't necessarily provide much more of a safety blanket in case things hit the fan because if, somehow, the HELOC lender can't recover their money, you'll get sued anyways.

What I mean by that is a blanket loan is underwritten on all value of ALL the properties.

Pretty sure Launch, Sherpa, and Batch are the only reliable and legal ones nowadays.