Great questions, Scottlinds! I own rental properties and recently attempted to take HELOCs out against them. I learned that HELOCs are generally not allowed on investment properties, only on primary residences. Can you take a HELOC out against your primary residence? If so, I'd recommend doing that.
You can also talk to a mortgage broker about refinancing your mortgage on your investment property in order to take more money out of the property. Finally, you may also be able to get a business loan from a bank and use that money to buy another property if you can prove to the bank that the loan they make will be safe. Feel free to give me a call if you'd like to talk more about this, since I just went through this entire process. Sincerely, Josh Perkins, Your Castle Real Estate, Denver, CO... more