All Forum Posts by: Mitchell Hein

Quote from @Mitchell Hein:

Quote from @Gustavo Delgado:

What about just getting a normal furnace? How much would that be? I'm guessing it would be about 50% cheaper and with regular maintenance it should last you 20+ years. You are posting from College Station so you know our winters in texas are fairly short ( less usage) but either way I would compare cost of the heat pumps to regular furnace before deciding.

Can you expand on that? Isn't a furnace just for heating? I don't know a ton about AC systems, those were just what the AC company I normally used gave me as options.

 Just talked to my AC company, and furnace isn't an option since we don't have gas to the property. It is already set up for heat-pump so makes sense to go that route again. Thanks for the suggestion though I hadn't considered that!

Quote from @Gustavo Delgado:

What about just getting a normal furnace? How much would that be? I'm guessing it would be about 50% cheaper and with regular maintenance it should last you 20+ years. You are posting from College Station so you know our winters in texas are fairly short ( less usage) but either way I would compare cost of the heat pumps to regular furnace before deciding.

Can you expand on that? Isn't a furnace just for heating? I don't know a ton about AC systems, those were just what the AC company I normally used gave me as options.

I just received a quote from my AC company, these are the two options we received:

Option #1: For a 2-stage Rheem heat pump system the total price will be $8,340.00.

Option #2: For a single stage Tempstar heat pump system the total price will be $7,280.00.

The property is a long-term buy and hold, so we plan on owning for the next 30+ years ideally. It is a duplex, 1,300 sq ft on each side, and we only need to replace the AC/heat on one side right now (this quote is for the one side). We have enough reserves to do either option.

I am leaning towards the more expensive option 1. I am thinking over a 30-40 year time horizon, the nicer system will require less maintenance and also last 3-5 more years, so would end up being the cheaper option in the long run. These properties are in the B to A class range, 2002 built so this is the first time needing an AC system replacement.

I am curious what everyones thoughts are here, would you go with the nicer system since you will have the property long-term, or is the $1,000 cost difference too steep for you?

@Dave Skow thanks for the rec, they also aren’t doing them right now. Turns out it is just a bad time with the current economic environment, I will try again down the road!

Quote from @Charles Holder:

Quote from @Mitchell Hein:

Unfortunately, Figure told me the following:

"Yes, we offer our HELOC product to primary, secondary and investment properties. However* for Texas applicants specifically its required that the applicants address matches the address of the property they have listed on the application."

So basically, they don't allow HELOCs on rental properties in Texas, thank you for the suggestion though!

 Yea I always advise people open helocs on their homes before they move, otherwise it's traditional cashouts.  can you temporarily make it your home?

We house hacked it the first year, and maybe would have had enough equity to get a HELOC, but didn’t do it. Now it is consistently cash flowing well so we probably would never move back into it. Its a good point though.

Unfortunately, Figure told me the following:

"Yes, we offer our HELOC product to primary, secondary and investment properties. However* for Texas applicants specifically its required that the applicants address matches the address of the property they have listed on the application."

So basically, they don't allow HELOCs on rental properties in Texas, thank you for the suggestion though!

Hello,

I know this has been posted a few times, but as the landscape for these products tends to change frequently, is anyone aware of any lenders that are offering HELOCs on a rental property (duplex specifically) in Texas right now (Aug 2024)?

I have equity in my duplex that I would like to leverage, but the interest rate on the mortgage is at 2.7% so I don't want to cash out refinance (considering interest rates right now are in the 6-8% range). I want to open up the HELOC to have as our emergency fund so I can deploy some of the cash we have saved up right now.