HELOC or loan on Manhattan coop

We own our one bedroom coop (~65% LTV) and are looking to buy the studio next door to eventually combine the units. In the interim, we would plan to fix the place up and rent it out for a year or two (no board approval issues here). Purchase price for the studio is $700k or slightly less. Two lines of inquiry: 1. If we fund the purchase price in cash, will it be easy for us to get a HELOC on the... [more]

We own our one bedroom coop (~65% LTV) and are looking to buy the studio next door to eventually combine the units. In the interim, we would plan to fix the place up and rent it out for a year or two (no board approval issues here). Purchase price for the studio is $700k or slightly less. Two lines of inquiry: 1. If we fund the purchase price in cash, will it be easy for us to get a HELOC on the new unit to fund improvements and have additional liquidity, since it's not 2nd in line behind a primary mortgage? How much equity could we reasonably pull out? What banks offer HELOCs on coops? 2. Alternatively, would we be able to get a mortgage to help fund the purchase of the unit? It would not be a primary residence or second home (since it's next door) so would perhaps need to classify it as an investment property. I asked Chase, who holds the mortgage on the one bedroom, and their only real option was to refinance the whole unit as a combined 2-3 bedroom apartment and take out a new mortgage on the combined unit. We're not ready for that yet and don't want to give up the extremely low rate we locked when we refi'd in May. I assume there have to be other financing options here given that we'd be willing to put a very significant down payment or fully fund for closing if needed as long as we could draw on the equity in the new unit soon thereafter. Thanks all. [less]