Should You Use Your HELOC for Home Improvements?

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  • Опубліковано 29 жов 2024

КОМЕНТАРІ • 32

  • @AntonioM-v6n
    @AntonioM-v6n 7 місяців тому +1

    Currently debating this, as I want to sell preferably by Spring 2025, Spring 2026 at the latest. Cash is most definitely King. I owed 145,700 but home worth about 300k.. the heloc rates are over 11% ar BOA now. I wish it was back at 4-7% and they will only continue to go up over the next 2yrs...

    • @JayCosta
      @JayCosta  7 місяців тому +1

      Dont do it. You wont get the money back.

  • @1rcherry
    @1rcherry Рік тому +2

    What about adding square footage like a bonus room in the attic?

    • @JayCosta
      @JayCosta  Рік тому

      Why do you need a bonus room in your attic?

  • @TheMrNinzy
    @TheMrNinzy 2 місяці тому

    Great video and informative! Just subscribed.
    I live in a 2/2, looking to extend and add a 3rd BR. Reasons: Have 2 kids, love the area, love the school, and most importantly rate under 3%. Is it still reasonable to HELOC/HELOAN for this purpose?

  • @brown6268
    @brown6268 Рік тому +2

    Thank you for this video. Will definitely not do HELOC for renovations on my home.

    • @JayCosta
      @JayCosta  Рік тому

      Cash is king! Thanks for watching!

  • @gabrielschroll3824
    @gabrielschroll3824 3 місяці тому +1

    It sounds like a HELOC might be the right move for my wife and I.
    We own a home, but we had to move out of state for work, and we're renting it in the meantime. Unfortunately, being out of state landlords isn't something we enjoy - especially as it was meant to be lived in - so we want to sell it. We considered fixing it and handing it to a property management company, but there are too many problems, and we simply don't have the cash for it.
    There are raccoons in the attic, some trees too close to structures that have the potential to affect the foundation, leaks in the garage roof, and the house roof itself is due to be replaced. It's also a 3:1, and we'd love to add a half bath, as most houses in our neighborhood - based on Zillow - are at least 1.5 baths. And there's no garbage disposal.
    We're thinking of letting the new buyer replace the roof, as it should last another couple of years *knock on wood*, and instead, focusing on the really major problem areas. We have already done a lot of DIY aesthetic work.
    At this point, we're considering this a flip. The money is really meant to bring the house up to a certain standard that will get us a sale quickly - within 2-4 months. It's not for aesthetic purposes or vanity. The previous owner simply didn't maintain the home whatsoever, and we're tired of dealing with it.
    By the way, I see all of the replies you've left. I know it'll be hard when your channel grows even further, but I always appreciate the content creators who care enough to engage with the comments section, whether you reply to this one or not.

    • @JayCosta
      @JayCosta  3 місяці тому

      Hi Gabriel, Thanks for the kind words. Is your HELOC going to be on the subject property that you want to sell? if not, I would not do it. I would simply sell as is. The reason is, for me, it would be too risky and I think you would be overleveraged on one property. Maybe, MAYBE just use some of the money to repaint and clean it up. But i wouldnt treat it as its own flip. Just my opinion, as everyone has a different risk tolerance. Let me know how it goes.

  • @SonnyLando
    @SonnyLando 2 місяці тому

    Seems like I’m too late in home repair. Got an ac unit that needs to be /repaired/replaced. Even if I invest that, about how long should the cash be invested for?

  • @BigNacho90
    @BigNacho90 Рік тому +3

    What if I use it to ad an additional bedroom and possibly rent that room out?

    • @JayCosta
      @JayCosta  Рік тому +3

      Still need a way to pay it back. How long would it take with the rent from the additional bedroom?

    • @BigNacho90
      @BigNacho90 Рік тому +1

      @Jay Costa oh ok I see.. it could be a few years or more.. so probably not worth it.

  • @loisdanes176
    @loisdanes176 9 місяців тому +1

    I want to sell my house but was told by a contractor it would be $50000 to get it up to move in ready and would probably take a year to get everything done because most of the contractors are so busy right now. We would probably sell as soon as the work was done enough to get it on the market. I think we could make over $100000 this way. Maybe up to $160000. I don't think we would lose money. But I don't know how these loans work. Our other option is to sell to an investor and let them take it on as a project, but that will probably reduce what we walk away with.

    • @JayCosta
      @JayCosta  8 місяців тому +1

      I wouldnt spend all that just to sell it. You wont get your money back and it will take longer and be more stress than anticipated. Just my 2 cents. Do a some little stuff like repaint, landscaping for curb appeal, and a good clean and that will go a long way. Thanks for watching!

    • @aljosephsagalongos8426
      @aljosephsagalongos8426 6 місяців тому

      I have a home with a rental units attached to the main dwelling, some of them does not have a permit and requires rehab. Should I used HELOC to rehab and up to date my rental units?

  • @fzeekybaby
    @fzeekybaby Рік тому +2

    Inherited a house that hasn’t been renovated much since the 70s. There’s about 100k in equity in a normal housing market. HELOC about 50k to update the home for my wife and I to live in long term?

    • @JayCosta
      @JayCosta  Рік тому +1

      If its long term I would do a Cash out refi or a home equity loan for a fixed rate. Thanks for watching!

  • @joebananas1655
    @joebananas1655 9 місяців тому +1

    Best loan to renovate a rental I own my home and rental outright

    • @JayCosta
      @JayCosta  9 місяців тому +1

      Why not a simple cash out refinance? Or a Home Equity Loan with a fixed rate. You can use a HELOC, but only if you have a plan to pay it off. Thanks for watching!

  • @arcusmc
    @arcusmc Рік тому +1

    I'm turning my house into a rental and it needs work to make it more family friendly. I can do most of the work myself with the exception of electrical and concrete work. HELOC or HEL?

    • @JayCosta
      @JayCosta  Рік тому +1

      I would do Home Equity Loan. For the fixed rate. Thanks for watching!

  • @mimirahim4028
    @mimirahim4028 Рік тому +1

    I purchased a home, no mortgage. I don't live in it because it needed new heating plumbing etc. Will I qualify if the appraiser say no to the loan? And you mentioned that you used cash. I don't have that kind of cash. Another thing is the HELOC was denied if used for a rental.

    • @JayCosta
      @JayCosta  Рік тому

      why not get cash out refinance? You should be able to get HELOC as well but I would cash out refi at a lower rate. Unless you have plans to pay off HELOC within a small period of time like a year or less.

    • @mimirahim4028
      @mimirahim4028 Рік тому +1

      The credit union said I couldn't do a cash out refinance because I didn't have a mortgage......were they blowing smoke up my azzz😄

    • @JayCosta
      @JayCosta  Рік тому

      Well it wouldn't be a Refi technically because you don't have a mortgage. But you could get a new mortgage for sure.

  • @quincyxan23
    @quincyxan23 9 місяців тому +1

    When you talk about “short term real estate,” how short are we talking? Anything shorter than 5 years? Also, if you only have 20% equity in your home, would using a HELOC to improve it not increase the value? Plus it’s tax deductible when used for repairs.

    • @JayCosta
      @JayCosta  8 місяців тому

      I would say short term should be no more than 2 to 3 years. It may increase its value? but for how long? Also, Just the interest is tax deductible, not the full amount. Thanks for watching!

  • @fvresw
    @fvresw 3 місяці тому +1

    I want to renovate my home and rent it out and buy another. Should I do a HELOC?

    • @JayCosta
      @JayCosta  3 місяці тому

      How will you pay back the heloc and how long will it take?

  • @bethanyguzman5964
    @bethanyguzman5964 3 місяці тому +1

    Okay but I don’t have cash to update my home…

    • @JayCosta
      @JayCosta  3 місяці тому

      Then you can't afford it yet.