Should I get a home improvement loan??

Question

I've lived in my triplex for about a month now and have two high ticket items that I think should be taken care of asap.

1- The roof is starting to leak and hasn't been replaced since it was built in 1983.

2- All the windows are single pane.

Should I get a home improvement loan to knock those two things out at once..? maybe raise the below market rents to compensate for the new payment, or just wait it out and save until I have the funds to do it by myself..?

Max T. · Answer

I would take care of the roof ASAP. Letting that go will only cause more damage to your property every time it rains (wood rot, mold, damage to pain/walls, etc).

The windows are a high priority item that you can wait and save up for, hopefully in less than a year. You don't want to go through the seasons more than once with leaky windows. But the roof should get fixed asap.

Hopefully you were able to use the condition of the roof and windows to get a price reduction from your seller after your home inspection!

Mindy Jensen · Answer

@Chantz Ireland, I was going to say exactly what @Max Tanenbaum said. The roof is immediate, the windows can wait.

Account Closed · Answer

@Chantz Ireland - if you do not have the cash to fix the roof, then borrowing it would be wise... a leaky roof can cause a load of damage (not to mention unhappy tenants) and should be fixed immediately as the above posters noted.

As for the windows, there are so many options out there, choose wisely.  The ROI (cost of new windows vs. utility savings) can take a very long time if the windows are in good condition, but just single pane... I've replaced far more windows for reasons of comfort rather than actual savings.

Depending on the type(s) of windows you have, you could add storm windows (likely the lowest cost option), pocket replacement, just sash replacement, etc.  Feel free to send pics and I'm happy to offer guidance.

As for raising below market rents... I presume you inherited the tenants since you've only been there a month?  Depending on their lease agreements and your desire to keep them as tenants, something to consider.  But do it for the purpose of getting fair market rent...

Matt R. · Answer

Like everyone else said, fix the roof first.  Get estimates from roofing companies and ask the estimator if the roofing company offers a finance plan.  If they do, compare their terms to what you can get from the bank.

For the windows, check into any energy-efficiency rebates that are available.  Sometimes you can get them from the gas or electric company.  Otherwise, the local or state government may have something.  In 2009-ish there was a federal program that gave you tax breaks on energy efficiency improvements, but I think it may have run out by now.  Sometimes, to get the rebate, you have to have the house inspected first to get approved for a certain rebate amount.  The window salesmen will probably know about the rebates in your area, but research it yourself too.

Ravi P. · Answer

@Max Tanenbaum has great advice. an established roofing company may be to let you differ payment, which would be like financing with no interest involved. they get the business, and with a signed contract can spread their payment out over the winter, when their business slows down

Chantz Ireland · Answer

Thank you guys for your input.  As far as from an investor stand point, Does it make sense to get another loan to fix the roof..?

Should I get a home improvement loan??

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