Hopefully some of the resident real estate pros can help me out here. Are any of you aware of “conventional” lenders who still provide HELOC’s on rental properties? I’m looking to pull about $300,000 in equity out of a rental property and want to do so as cheaply as possible. The property is a single family home worth $475,000 - $500,000 and is about to have a new tenant under a 2 year lease. I’ll put the property back on the market for sale when the lease is expiring and use the proceeds to pay off whatever financing I get. The property is currently debt free.
I’ve already talked to the lender on my residence (CapitalOne) and the best they can do for me is a cash out refi 7/1 ARM at 3.875% with $3,100 in closing costs and max of $200,000.
Thoughts? Suggested lenders?