HELOC or Loan for Big JOB - Need Advice

5 Replies

Hello Everyone, 

I've couple of rental properties, one of which is 45yrs old and has little equity ( I bought it a year ago). This property (3 bedrooms, 2 bath) has a sewer line (cast iron) break up under the foundation and I am planning to get a re-route the complete plumbing underneath. They gave me an estimate for 15k. I also have a 10 yr old property which has 30k equity in it. Should I get a HELOC on this newer property and get the repairs done or what you guys suggest. Any advice appreciated. Thanks

Shiva

First I'd get at least three bids on a big job like this.  I've had quotes for this job ranging from $4000 to $9000 for the same job.

$30K equity doesn't translate directly into how much you can borrow.  You won't get to 100%.   Not sure what's available right now and it will depend on whether its your residence or a rental.

Jon - thanks for the reply and yes, I've 2 more appointments tomorrow to get the estimates.

Wilson - Yes, I am leaning towards CC or p2p (lending club) but trying to explore all options.

@Shiva M.  

Do you own a primary residence with equity?  HELOCs are that property is probably going to be at a lower rate.

For this amount of money, I'd hit up the old Friends and Family network.  Offer someone 6% and a reasonable payback period and someone will jump.  If someone does, please, please put everything on paper :)

Aaron, thanks for the input. 

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here