Line Of Credit Or Refi?
We have two rental units and a single family home, we want to speed up the pace for additional rentals. We've only had the single family since July 04 and the rental (duplex) since 1999 and we did a refi on the duplex in April 04.
Is it better to apply for an equity credit line on either or both or just wait 6 months to a year for more equity in them and then refi one or even both for downpayment money for future rentals. Has anyone ever done a refi or line of credit that quickly on a property (5 months after purchase)
Thanks for any input
la2la
I prefer the equity line of credit. While refinancing may be an option the LOC usually happens much quicker with less paperwork and very often no fees what so ever. Also the money is very easy to access - there when you need it. I recently acquired a LOC on a rental - online, and I didn't need to show any pay stubs, tax returns, bank statements, etc... and a drive by appraisal wasn't even done.
Now to me, that was pretty slick - although I do wonder how much info was available to the lender about me online...
And to answer your other question, nope. I've done a refi and then a line of credit almost back to back but the rental property was owned for a long time.
It depends on the Lender. I have I will be closing to closing on a property within the next week and will be refinancing the property as soon as I'm done with closing. As soon I get property , deed, and title insurance I will be refinancing the property. I like PNC or wachovia bank. some banks require seasoning and some do not.
Thanks you guys
Oscar this probably sounds dumb because of my inexperience but do you have to notify the folks at closing that you will immediately refi or do they even care at that point.
Christine