Financing Dilemma..

I don’t really want to hijack DJ’s thread, so I’ll start a separate one!

We assumed a mortgage on a converted duplex near the Texas Coast over 10 years ago. We lived there for several years, but are temporarily renting a house in another city where my son is attending school. We owe less than $17000, and will mature in less than 7 years. We do eventually plan to move back. Meanwhile we converted it BACK to a duplex, keep one half as a ‘vacation’ home, and have long-term renters in the other to pay the mortgage. We VERY much need to access the equity, which should be around $30,000 or more, to do some necessary repairs, as well as renovating ‘our’ half to lease out also for some positive cash flow. We would also like to look into buying & renovating more properties for rental ( my DH is in construction & remodel!).
I have also found that banks ( AND my long-term credit unions!) will not even consider a HEL or HELOC on our property as we do not currently live there full-time, it’s a multi-family home, AND we rent out to ease the mortgage burden making it an Investment Property!!

Do we have any other option, except for my DH to move BACK into ‘our’ half, reestablishing residency? We’re NOT going to kick out our renters…we need the $$$!!!

Dana,

You will most likely have to refinance the entire property to get access to the equity. With rates as low as they are right now, that is what I would suggest. What part of Texas are you in?

Dana,

Provided you meet the lenders credit guidelines you should be able to do a cash out refinance of a second home to pay off the existing 17K plus 30K plus closing costs. Do you think it’s worth at least 77K right now?

The property is in a small tourist town about an hour up the coast from Corpus Christi. It’s not on a big lot, but it’s in a prime spot & could very well BE worth that much or more with the work we want to put into it!
I’ll look into that option…I just looked as far as the HEL/HELOC & got shot down, never considering that as an alternative!

Thanks!! Dana