"Cruze's response was direct. 'Go live on the boat, rent out the unit for $8,000 a month, use that to help cash flow these renovations, and I would just cash flow one at a time,' she told E. 'So no, we're not going to tell you to take out a HELOC.'"
"E estimates he can complete both renovations for under $50,000 combined. Eight thousand dollars a month in rental income covers that relatively quickly without touching a credit line."
"'The other option would be to look at everything in full with two vacant gutted units, yours, and how much would the whole thing sell for? And do you want to get out of this deal?'"
"'Even if you had to drop the price $400,000, that's $1.4 million, you know what I mean?' Cruze said."
E owns a three-unit property with significant equity but faces renovation costs. Rachel Cruze suggests he live on his boat and rent out his unit for $8,000 monthly to fund renovations without incurring debt. This approach avoids the risks associated with a HELOC, especially given current interest rates. Cruze also presents an alternative option of selling the property, which could yield a substantial profit even after accounting for the property's condition and existing debt.
Read at 24/7 Wall St.
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