How do you pay for CapEx/Maintenance?
2 Replies
Account Closed
posted over 3 years agoI've been thinking about using my primary homes' HELOC to pay for capex and maintenance costs on investment properties. Even though it's a variable rate (which is going up slowly these days) it amortizes the cost over 20 years making the out of pocket much less than using industry standards like $200/SFH door. Basically allows me to pocket much more each month I can use to keep investing.
Does anyone have any thoughts on this? Great idea? Terrible idea?
How do you typically pay for capex or maintenance?
Antoine Martel
Rental Property Investor from Los Angeles, CA
replied over 3 years ago
I usually pay for the maintenance from the rental income.
So then you dont add anymore debt to your balance sheet.
Chris LumLee
Investor from Honolulu, HI
replied over 3 years ago
I have a separate sub-savings account where I direct some of the income from my rental into specifically for CapEx/maintenance. When I first started with my property small amounts were taken out of the rent but bigger amounts I paid on my credit card and then paid for out of pocket.
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