Q on Equity line

[irfanroberts]

Q on Equity line

***************************** I apologize if this is not the correct group for posting this message. I think a few readers here may have faced this situation.

We have a rental property ( townhome) that is fully paid up. It has been continually rented for many years.

I would like to get an equity line- just in case the situation arises where we need cash. I called Schwab and they indicated that they do not have equity lines on "rental property".

Can anyone please let me know which banks / institutions offer such lines of equity on "rental properties"? and if so are there any pointers ie do's and dont's.

The property is in the SF, Bay Area, CA.

Thanks in advance,

Irfan Roberts

[dpb]

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showed up in a quick google (altho the story is, as you can see, 18 months old).

It's never been a popular item for the lenders but your best bet will probably be the bank or credit union you have a long term relationship with already. Be prepared for extreme scrutiny and given the current state of lending even if can find a willing lender it's unlikely to be inexpensive. They're going to evaluate it as a business/commercial loan, not personal in all likelihood unless you have a developed relationship in a (relatively) small, personalized institution. If it's one of the big boy's branch offices and all you have had is a checking account w/ routine activity you're probably SOL in the current environment.

[jloomis]