CapEx account for a house hack - Savings vs HELOC
I've recently bought a 1910s duplex in the greater Boston area for a little more than $600k as a house hack. With the age of the home I need to consider major CapEx. Right now I have on the following on my radar:
- $3k (immediate): W/D and hookups
- $15k (~2 years): 2x heating conversion to natural gas and baseboard heating for 3rd floor
- $15k (~5 years): House siding
I've budgeted $500/month for capex and am putting it into a savings account.
Down the line, once i'm under 80% LTV (5 years w/o appreciation), I'm not certain if I should consider using a HELOC for capex or try to rely on a savings account. Obviously there is an opportunity cost to that money and I should have some amount of cash available. The decision will partly depend on my risk tolerance.
What's everyone's thoughts on a HELOC vs savings for CapEx? Pros vs Cons? Other thoughts?