Looking for suggestions on how to find lenders that do lines of credit on residential rental property in Florida. My web searches are returning lots of HELOC offers and foreign lenders, but difficult to narrow down who provides specifically what I'm looking for.

Amount would be sizable ($250,000), but well below standard LTV ratios, based on current comps. Our private banker has offered a limit of $100,000 because the property is classified as "investment." Is this standard?

Before I answer let me forewarn you that most departments are divided into market/product divisions and that each of these divisions has lending products that are targeted for its market. Private banking is a hybrid because it should be able to take care of both your consumer, residential, business, and real estate investment lending needs at once. In reality, the private banker will hand off your request to the appropriate department and will let them underwrite it according to their standards. I am saying this, because the first thing that jumped at me from your post was the ” Amount would be sizable ($250,000), but well below standard LTV ratios” comment.

Just exactly what do you consider standard?

For investment {income producing property}, this would be about 80% or 75% loan-to-value.

Lines of credit are also not usually given based on investment property. I have underwritten a few, but doing a refinance with a “cash-out” portion is more common. Although this is sometimes frown upon unless there is a good reason to access the cash.

Hope this helps.

If you plan on keping the property for the next few years, then refinancing with cash out would be cheaper than an equity line, unless you have flawless credit. The rate on a first mortgage for investment property can be low providing you have the financials, credit, and property value. You should have a trusted advisor go over tax planning stratiges, financial planning, and have a market rental analysis done on investment property so that you prepare for your next real estate transaction. Investment property should produce positive cash flow and with that, should off set your liabilites reducing the risk of your loan, allowing you to take advantage of the tax benefits, and qualifying you for a low interest rate. If you have any question send me an email:
mlyles@moneyhaus.com

Good luck