All, thanks for the great forum questions and answers they really help.
I have gone very slow with my entry into rentals. I bought a 2 unit for 58 k, the comps in the area (an exact house up the street just sold for 111k) are around the 105-115k and I believe my house in much better shape
My second one I bought for 72k (another two unit) and current comps are around 115k…actually it’s twin sold last week for for 111k
My question. Can I go to a bank and try to get an equity line of credit for these?
Yes, you should be able to do it from a small local bank.
I just bought a duplex–no money down–for $127,500. I used a rehabbed property as the equity. Both are being appraised. (Expensive-$1200 for the 5-plex, $600 for duplex which seller paid.)
Then the bank adds up the appraised values, multiplies that by 75%, subtracts your current mortgages, and what is left is the line of credit equity line. You aren’t charged on that line of credit until you use it.
In my case the bank rolled the new mortgage and the old mortgage into 1 new mortgage (blanket mortgage) which is in front of the credit line. That way I didn’t have to come up with a cash downpayment.
Go shop around 2 or 3 of your local banks; they should like talking to a smart seasoned investor like yourself.