HELOC on Newly Renovated Duplex.

[Ike Stephens]

A brief overview of the situation:

In September 2019 I purchased a duplex in Cleveland, OH using a conventional mortgage with 25% down. I'm about to make a lot of renovations to it that will significantly increase the value of the property (roof, interior/exterior paint, flooring, kitchens, bathrooms etc).

If I apply for a HELOC, will the bank likely use the purchase price from September or will they consider the renovations when appraising it? Basically I'm trying to determine if there's any way to recoup some of the costs of the renovations? Would it help if I held the property for 12-18 months before applying for the HELOC?


Thanks in advance!


Ike