I just talked to a local bank that will offer me a HELOC on our rental property equity. He's at prime+1%, with closing costs under $1000 (will get exact number). I don't need access to the cash now, but am trying to think through if I should get this set up to have access should I need it some day. Others might cash-out refinance, but we really like our first mortgages and are on track to pay them off in ~10 years and live off cash flow (we do already). We'll be late 60's when they're paid off. What do you think of this plan? One option might be to use it for a down payment for one more property some time in the next decade, but we're actually pretty good with the number of units we have now.
No rush for us to sign up for this. It's just a way for us to have the option to unlock our equity. We may never use it.
Opinions?
