Forcing equity to obtain a HELOC.

2 Replies

Hey everyone! I am wanting to take out a HELOC on my primary in order to invest but i had two questions unanswered. My home is 4 bedrooms but there is another room that is basically a bedroom without a closet. Would it be better if i added a closet to show it as a 5 br or is it even worth it going from a 4 to 5 to force equity? Also dors the br have tp be built in or is there another way to count it as a br? Also i have a room that serves as my workout room but doesnt have hvac so i believe its sq ft has never bern counted. Would it make sense to run hvac to it so i can gain the additional sq ft? The room is about 8×12. I want to maximize my appraisal to get a larger line of credit. Thanks

Adding a closet will probably not make much different in the appraised value since you are not adding sq footage. You should check county records to see what sq footage your house shows. An appraiser can only use the sq footage that is on county records. If someone added on sq footage to a house without permits then the appraiser can not count that sq footage when determining value. If the workout room was added on without permits it will not matter if  you run hvac to that room because the appraiser can not count it.

If the room is just missing heating to be considered finished sqft, your cheapest option might be to just add a cadet heater.

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