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Turnkey Real Estate Investing

4 min read

5 Ways Investors Can Access Property Equity Without Selling

Tue, Mar 12, 2024

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One of the arguments critics like to use against real estate investment is its lack of liquidity. To access cash, you must endure the rigamarole of selling the property. As any seller knows, this process can be one long headache. 

Fortunately, having cash in hand isn’t the only way to reap the rewards of your property’s equity. Investors should know all of their available options. We’re not necessarily recommending these strategies. They each come with unique benefits and drawbacks, and we urge individuals to do their due diligence.

While each option can be highly advantageous, don’t ignore their risks. With that said, here are five ways investors can tap into the equity of their rental properties…without selling!

5 Ways to Access Property Equity WITHOUT Selling

Method #1 – Home Equity Line of Credit (HELOC)

A HELOC is a revolving line of credit that allows you to borrow against the equity in your rental property. You can use this money for renovations, investments, or other big projects. Consider this strategy a marriage between a mortgage and a credit card. You can borrow, repay, and borrow again within a set period (usually up to ten years.) You’re only charged interest on what you borrow. 

Additionally, because you use your property to secure this loan, the interest rate tends to be lower than a typical personal loan or credit card. (But beware! Rates are variable, not fixed.)

Remember that the property’s value and your creditworthiness will influence the amount you can borrow. That said, there is a risk in securing any loan with your property. You could lose your property entirely in the event of nonpayment. If you employ this strategy, do so wisely and with specific intentions. 

Method #2 – Cash-Out Refinance

With a cash-out refinance, you can replace your existing mortgage with a new one larger than the outstanding balance. The difference between the two loans is paid to you in cash, which you can use for various purposes. Rates can be fixed or adjustable. 

This option is worthwhile if you need cash and have built up serious equity. That said, it can be risky. It increases your monthly mortgage payments and the repayment term. The market can determine your borrowing power, and, as with a HELOC, your property is used as collateral.

Method #3 – Home Equity Loan

A home equity loan, or a second mortgage, allows you to borrow a lump sum against your rental property’s equity. The difference between this strategy and a cash-out refi is this is a fixed-term loan with regular payments and a fixed interest rate. Of course, you’re taking on a new mortgage agreement entirely rather than refinancing an existing loan. Be mindful of overburdening yourself with debt, and use your newfound leverage wisely.

Method #4 – Cross-Collateralization

If an investor owns multiple rental properties, they may use one or more property’s equity as collateral to secure a loan or line of credit. Using the equity across multiple properties can potentially secure a much larger loan or credit limit than with one property alone. Of course, the obvious drawback is that several properties are put at risk as collateral. 

Method #5 – 1031 Exchange

While the 1031 Exchange doesn’t directly provide access to equity, it allows real estate investors to defer capital gains taxes when selling a rental property and reinvesting the proceeds into another property. If their combined value matches your existing property, you’re looking at a “like-kind” exchange that can include a single property or more than one. This can help investors acquire more valuable properties or break into new markets as they exit another. 

We’ve aided in securing countless 1031 Exchanges for our investors. This strategy demands planning well in advance, so stay on top of it! 


Tapping into your equity doesn’t always demand an exit. If you need access to cash or credit, these strategies are worth considering whether you want to expand your portfolio, renovate, or consolidate debt. We recommend discussing any of these options with your financial advisor and carefully evaluating the risks. Go in with a clear plan and understanding of your risk tolerance.

Investors often have more options than they realize. While you may never utilize these strategies, it’s good to know they’re out there!


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Chris Clothier
Written by Chris Clothier

Entrepreneur, writer, speaker, ultra-endurance athlete, husband & father of five beautiful children. Chris puts these natural talents on display every day. As a partner at REI Nation, Chris addresses small and large audiences of real estate investors and business professionals nationwide several times each year. Chris is also an active writer, weekly publishing real estate, leadership, and endurance training articles.