He does have good terms on his HELOC because it's older and a better rate.

I'm looking for a new lender for this HELOC product and I see this as the only solution if I'm going to keep my low-rate, first position mortgage intact.

I could see this being useful in a BRRRR scenario, but in that case you could be looking at a much longer term loan than 30-60 days, especially given supply chain issues and the uncertainty of the person being able to qualify for the cash out loan as rates continue to climb.

Thx Bruce, Sorry, not sure how the 2% interest rate idea snuck in there.

If you give them $1M and you collect $100k in interest, that interest is taxed at ordinary income rates.

Do you have a general idea of the interest rate on the HELOC either for your primary house of investment properties that you could get?

The higher your credit, the better rate you will receive on your loan.

Everywhere in the country will be different with labor and material rates .

Seller financing does not always sell for more money and if there are big price declines then you may end up having to forecloseMy recommendation is to sell it with borrower getting traditional financing and put that $ in a tax friendlier account than loan interest = ordinary income rates

I just sold a duplex for $520,000 in four days, even though the current income is $1800/month and the market rate is only $3,000/month.