HELOC to fund a rehab?

[Chad Jones]

I have my dad's house (he passed 2 years ago) and am wanting to rehab it & rent it. My vision is to keep it a while (it's paid off) and use the cashflow to help with my kids college. A full interior rehab will be about $40,000. Would a HELOC or home equity loan on my personal home be a good idea to fund this? What other options would be good? Thank you in advance!

[Devin Peterson]

Quote from @Chad Jones:

Quote from @Devin Peterson:

Quote from @Chad Jones:

I have my dad's house (he passed 2 years ago) and am wanting to rehab it & rent it. My vision is to keep it a while (it's paid off) and use the cashflow to help with my kids college. A full interior rehab will be about $40,000. Would a HELOC or home equity loan on my personal home be a good idea to fund this? What other options would be good? Thank you in advance!

If you can get a better primary residential HELOC rate than you can a hard money bridge loan I would say yes. You'd be looking for HELOC rates better than 10-11% to fund the reno. Local banks and smaller credit unions are most aggressive in this space. Good luck

 Thanks Devin, yes was quoted 10 & 11% from rocket mortgage.  Going to shop local to see if I can get a better %. 

 Thats not terrible - local is better. Credit Unions and mom/pop small banks would be best.