Cash or HELOC for flooring upgrade?

[Jason Dumbaugh]

Hello BP fam,

I'm planning on upgrading my flooring from carpet to some sort of laminate/vinyl/hybrid flooring - both for personal (allergy) purposes in the short-term, and for re-sale in the long term (6mo+). Estimate is coming out around $7500 for materials and labor. This is my primary residence and I've been there for 2y+ so there won't be Capital Gains on the sale.  

Would you:

1) Come out of pocket to cover the upgrade?
2) Set up a HELOC to cover the cost?
3) Another option?

I figured if I was going to owe Capital Gains, a HELOC would make sense since you don't have to pay Capital Gains on debt service. With a HELOC being around 9% I'd probably be paying more in interest than the money would make in the stock market. What do you think?

[Matthew Crivelli]

If you have the ability to pay cash for the flooring it would be the cheapest option. No sense in paying 9% interest by using equity unless you have to do so.