Hello-
Looking for some thoughts/advice on best way to fund a remodel:
Bought a house in historic part of town for $1.1M in Dec '21; have a 30 year note @ 2.75% with 628k balance.
Estimated current house value is ~1.3-1.4M. It is one of the cheaper houses on the street. Investing in this property seems 'low risk' to us as it will only bring it up to the neighborhood standards. I have been very carefully choosing properties and remodeling them over the past 12 years while living in them for ~3 years. We have been able to turn an initial 20k investment in my first house in 2012 into ~500k in equity. This will likely be the house we stay in for 10+ years, and not looking to flip this property in the short term.
We will be redoing the kitchen, master bath, coffee bar, and all new floors throughout, also rebuilding a deck. Total will be ~250-300k. The intent was to do this remodel in 2025, but we had a shower pan failure over Thanksgiving which is accelerating our timeline. House was purchased knowing there were major issues, but we thought it could wait a little longer.
Current Assets:
1.4M in investment accounts (160k is in TFLO earmarked for this remodel, rest invested in ETF long term)
900k in retirement accounts
Current Debts:
Mortgage balance of 628k @ 2.75%
Student Loans ~23k @ 7%
Income:
Dual Income both (~35yo) ~400-500k/yr total
Looking to raise about 100k and trying to brainstorm the best options:
Can obviously sell investments to raise this, though not my favorite option.
HELOC - rates seem quite high even though there is the ability to deduct some of the interest.
SBLOC through fidelity looks to be Prime + 2.35 so ~8.2%
Any other thoughts or advice?
Looking for some thoughts/advice on best way to fund a remodel:
Bought a house in historic part of town for $1.1M in Dec '21; have a 30 year note @ 2.75% with 628k balance.
Estimated current house value is ~1.3-1.4M. It is one of the cheaper houses on the street. Investing in this property seems 'low risk' to us as it will only bring it up to the neighborhood standards. I have been very carefully choosing properties and remodeling them over the past 12 years while living in them for ~3 years. We have been able to turn an initial 20k investment in my first house in 2012 into ~500k in equity. This will likely be the house we stay in for 10+ years, and not looking to flip this property in the short term.
We will be redoing the kitchen, master bath, coffee bar, and all new floors throughout, also rebuilding a deck. Total will be ~250-300k. The intent was to do this remodel in 2025, but we had a shower pan failure over Thanksgiving which is accelerating our timeline. House was purchased knowing there were major issues, but we thought it could wait a little longer.
Current Assets:
1.4M in investment accounts (160k is in TFLO earmarked for this remodel, rest invested in ETF long term)
900k in retirement accounts
Current Debts:
Mortgage balance of 628k @ 2.75%
Student Loans ~23k @ 7%
Income:
Dual Income both (~35yo) ~400-500k/yr total
Looking to raise about 100k and trying to brainstorm the best options:
Can obviously sell investments to raise this, though not my favorite option.
HELOC - rates seem quite high even though there is the ability to deduct some of the interest.
SBLOC through fidelity looks to be Prime + 2.35 so ~8.2%
Any other thoughts or advice?
Statistics: Posted by Spatch — Mon Dec 18, 2023 8:25 am — Replies 4 — Views 174