Posted by Matt G on March 30, 2004 at 12:08:24:
Frank-
understand your issue. as a loan professional for 12 yrs, last 4 yrs specializing in investment property there are three ways in which in the value is derived,
income (rents), market comparables, and cost to build. the main choice is comparables.The most a lender would do is 90% based on comparable value now. your credit has to be super.
thanks for asking.
Best regards,
Matt
HELP - Need Advice on Home Equity Line of Credit - Posted by Frank Notaro
Posted by Frank Notaro on March 29, 2004 at 21:58:44:
I need help with a home equity line of credit. I bought a 3-family last March and I?d like to get a home equity loan. I offered $390K, and the bank appraised it at $390K and $409K when the counted the rental income. In the past year I was able to raise my rental income from $4090/month to $4653/month. The way I figure it is now the house is valued at $465K when you take the rental income into account. My problem is that I paid $360K because of the comparables. I am not sure of any comps since I bought last year. I also owe $320K.
Is there any way I can get a bank to give me a home equity line of credit on the $465K (rental value)? I do not live in the house if that makes a difference. Any help would be appreciated.