Roof Repairs: Cash or Loan?

Question

I have to re-line the box gutters in one of my properties. The best quote I got from a reliable contractor was 10k for both box gutters.

I do have the cash to cover this, but those investments are doing quite well right now and I really don't want to take the cash out. If I got a loan for 30k for improvements I would be able to do some other improvement work to help the home be more appealing-- it's in a decent neighborhood so any improvements would be a big help. The house is paid off so there is good cash flow.

I am not experienced in the ways of loans-- have just had 3 run of the mill fixed rate mortgages and haven't worked with refinancing, improvement loans, etc.. I have talked to some folks and the closing costs for improvement loans seem very high, and it will take some time to secure the money. I need to get started on the roof within the month and can't wait six weeks.

What would you do in this situation?

Andy O. · Answer

I'd shop around for a HELOC, and pay back with cashflow.
Then keep it open in case you have future need for cash.

Kyle J. · Answer

If you have enough equity in the property, a HELOC loan like Andy O. suggested would be a good option.

Brook W. · Answer

David Beard thanks for the idea... I am definitely re-lining them. It is a nice brick home in Northside and values are going up there. The box gutters look good and it will help the eventual resale value. It also has slate shingles that I have maintained yearly, and I know if I get the box gutters re-lined they will be good for several years to come. If I thought it wouldn't impact the future value I would go with conventional gutters.

David Beard · Answer

Brook W. - have you looked at just cutting the old box gutters of and going with conventional gutters?  This is highly recommended by many contractors as a more cost-effective solution.  This is especially advisable if the soffits are exposed wood and subjet to decay and continual maintenance.

Brook W. · Answer

Andy O. and Kyle J. thanks so much for the advice. I know how I'll be spending my Monday morning...

Roof Repairs: Cash or Loan?

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