Real Estate Rookie Podcast – Episode Summary

Episode Title: How to Get a HELOC on Investment Property: Use Your Equity! (Rookie Reply)
Hosts: Ashley Kehr, Tony J Robinson
Date: September 12, 2025

Overview

In this “Rookie Reply” episode, Ashley and Tony tackle real-world, beginner-focused questions around tapping into property equity with a HELOC (Home Equity Line of Credit) on investment properties, navigating tricky tax lien auction scenarios, and honestly confronting how much time real estate investing actually takes for new investors. The episode provides actionable tips, personal experiences, and the kind of candid advice you don’t typically find in textbooks—perfect for those getting started or building modest real estate portfolios.

Key Discussion Points & Insights

1. Can You Get a HELOC on an Investment Property?

[00:34 – 13:03]

The Listener’s Scenario (Marissa)

• Marissa wants a HELOC on her current rental property, which still has a mortgage, as a financial backup for future opportunities. Banks she’s contacted don’t offer HELOCs on non-primary residences.

Hosts' Experiences & Advice

• HELOCs are Usually for Primaries:

  • Tony: “Typically HELOC is something that is more predominant on a primary residence.” [01:00]
  • Many investors get a HELOC before converting their primary into a rental.

• Commercial Lines of Credit as an Alternative:

  • Ashley: Secured lines of credit on rentals through small local banks, not national ones. These are commercial products, not traditional HELOCs.
  • “I have done [lines of credit] on rental properties … through a small local bank.” [02:41]
  • May need to locate a bank’s commercial loan officer, not residential.

• Existing Mortgage Complications:

  • Ashley has not taken a HELOC on a property with an existing mortgage; hers were free and clear.
  • For those considering moving out of a primary, get the HELOC before doing so.

• Cash-out Refinance as an Option:

  • Refi could mean new terms and rates, but weigh the pros/cons versus access to equity.

• Creative Solutions If Not in a Rush:

  • Tony: Suggests possibly moving back in temporarily to qualify, but warns to check lender stipulations.
  • “If you’re not in a rush, that might be the simplest path forward.” [05:26]
  • Private lenders might lend in second position, but at higher rates (e.g., 12%).

2. Commercial Line of Credit Mechanics

[07:05 – 11:49]

Ashley’s Process

• “Mine is interest only. … I draw, make interest payments, and can pay back principal any time.” [07:56]
• Draw and repayment is simple—email or form, processed same day.
• Interest rates discussed: one at 8%, another at 8.5%.
• Only pay interest when you use the funds.

Repayment & Risks

• Short-term use is key; Ashley only uses lines for 3–6 months, then pays off.
• Ashley’s partner’s HELOC converted to a traditional loan after only making interest payments for a long time.
• Tony: Difference between a line of credit (reusable) and a home equity loan (fixed amortization) [11:29]

Use Cases and Warnings

• Both agree short-term leverage is less risky than using lines for down payments on long-term holds.
• Success stories: Some investors grow portfolios by recycling one large HELOC over and over.

3. Navigating Tax Lien Auction Properties

[14:34 – 22:54]

Listener Scenario (Margaret)

• Won a tax lien auction in TN. After visiting, she noticed someone still lives there and that the area may have questionable circumstances. There’s a one-year redemption period.

Legal and Practical Steps

• You cannot evict until redemption period is over and deed is in your name.
• Ashley: “My first thing would be to start an eviction process ... after you have the deed.” [16:14]
• Redemption periods vary by state/length of delinquency. TN ranges from 30 days to one year, depending on how long taxes are unpaid or if the property is vacant.

To-Do During Redemption Period

• Run a thorough title search.
• Prep, but don’t take possession or begin eviction until legally allowed.
• “I think preparing yourself legally that way would also be the smart move.” – Tony [19:20]
• Hosts want to bring on a tax lien expert for a future episode.
• Fun stories about attending live auctions, the learning curve, and surprises in the process.

4. How Much Time Does Real Estate Investing Really Take for Rookies?

[27:13 – 33:00]

Honest, Practical Answers

• For Beginners Seeking Their First Deals:

  • 10–15 hours/week is realistic if you’re balancing a job, family, etc. [28:24]
  • “The actual time spent on your one rental is going to be very insignificant.” – Ashley [29:50]
  • Real estate investing time fluctuates: some weeks are light, others heavy (lease renewal, repairs).

• Learning Curve:

  • Over time, analyzing deals becomes much faster as you get familiar with your market.
  • Tasks include: deal analysis, managing properties, network building, and research.

• Quality vs. Quantity:

  • Tony: “Maybe the more important question than, you know, how much time should I be investing, [is] what are the most important things that I should be focusing on?” [31:24]
  • Getting clear on strategy and motivation is more valuable than just putting in hours.
  • Overcomplicating the process is common for rookies; focus on consistent, quality actions.

Notable Quotes & Memorable Moments

• On HELOCs for Rentals:
  “Typically HELOC is something that is more predominant on a primary residence.”
  — Tony J. Robinson [01:00]

• On Creative Lending:
  “...You could also find a private lender too, that would maybe take second position on the home...”
  — Ashley Kerr [06:28]

• On Line of Credit Usage:
  “If you’re not using the money, you don’t have a payment and you’re not paying any interest on anything.”
  — Ashley Kerr [08:44]

• On Short-term Use:
  “Leveraging the home equity line of credit, or really any line of credit in a short term basis, I think is less risky than dumping it into a down payment.”
  — Tony J. Robinson [12:01]

• On Auctions and Surprises:
  “At the time I did not realize that they update the list like every two weeks...I learned my lesson.”
  — Ashley Kerr [21:20]

• On Time Commitment:
  “I’d say 10 to 15 hours a week I think is reasonable for someone just getting started...”
  — Tony J. Robinson [28:24]

• On Focusing Efforts:
  “Maybe the more important question...is what are the most important things that I should be focusing on?”
  — Tony J. Robinson [31:24]

Timestamps for Key Segments

• 00:34 – 13:03: Deep dive on HELOCs and using equity from rentals
• 07:05 – 11:49: Commercial line of credit: repayment, process, and risks
• 14:34 – 22:54: Handling tax lien auctions and redemption periods
• 27:13 – 33:00: Realistic time commitment for rookie real estate investors

Overall Tone & Takeaways

Ashley and Tony keep things approachable, supportive, and practical—focusing on clear, step-by-step advice for beginners and sharing their own wins and mistakes. They emphasize creativity when traditional lending routes close, the critical importance of legal due diligence, and the need for realistic expectations around time and effort as a newbie investor. The episode is perfect for those seeking actionable, down-to-earth guidance as they navigate their first real estate investments.