strive4credit Posted January 8, 2012 Report Share Posted January 8, 2012 Here's the situation:A duplex two - 2 bedroom units. Owned flat out. Bought it for 30k, put about 10k in it. Very nice rentable units. 750 and 650 pr month. I have good credit 720 -750. I pretty much tapped out my finances by my standards, meaning I like to have a certain amount on hand. I know this property could get appraised for a good amount based on the comps in the neighborhood. Properties for sale at 130k and 120k. Went to one bank and the terms on their HELOC were shaky. Also I had bad experiences with HELOC's in the past. So what would you do? How would you cash out? home equity loan, Refi, or HELOC? Link to comment Share on other sites More sharing options...
1stStep Posted January 9, 2012 Report Share Posted January 9, 2012 I own a couple rentals myself...I personally have LOCs on them - I don't tap them, but they are there in case I need them. This way, I have a cushion, but I'm not paying interest on the money until I pull it out.I'd call 1 or 2 local banks to see what they have. Link to comment Share on other sites More sharing options...
strive4credit Posted January 9, 2012 Author Report Share Posted January 9, 2012 I am going to get the first bank to pull my credit, make an offer then I will shop around to see if other banks can beat them.I think I am going to go with a home equity loan and be aggressive with paying it off. Look at this scenario 70k at 4.1% interest Loan Line of credit Monthly payment $616 $239 Ending monthly payment $616 $239 Total interest $18,694 $34,356 Amount owed after 144 months $0 $70,000 Link to comment Share on other sites More sharing options...
Recommended Posts