Is It Alright To Use A HELOC For This? 

Facts, Dave lots of integrity 👏🏿

@@termsb7635 link?

That’s not what it says.

His website could’ve been hacked

Nailed it

Or so the banks will say

What do you have in your wallet .... A squirrel....I think he's got rabies

🤣🤣🤣🤣

The American Dream.

Yeah, I was laughing at that one myself! Clearing $125k, and only has a grand to his name??? Sheesh! Dude, what happens if you lose that job next year? Hope for the best, but plan for the worst! That said, it's generally not a good time to take a loan and do a reno. Why? Interest rates are up, as are material costs. Pay your $30k debt, and do the reno in 2024.

@@nephetula Not to mention a recession next year where the chances of losing a job is increased.

The irony is that people who can pay for $40k in upgrades without borrowing would probably look at the same house and say that it's fine the way it is. HGTV is evil folks.

Agreed. Wife and I are in the same position, in baby steps 4-6 while building out our basement at the speed of cash only. You make different decisions when it's your bank account paying the balance.

Some people spend it as fast as they make it

Not hard at all to spend $145k before taxes.

Lifestyle creep

@@edhcb9359 Not where they live. You can get 2k square foot houses for like 300k.

@@jimmymcgill6778 Still doesn’t make it hard to spend 145k before taxes.

Everyone goes at their own pace. It largely depends upon how old you are & your circumstances in your younger twenties. If you are 50 years old saving $10k a year for 20-25 years, that’s impressive, but just standard. If you are 25-35 years old, very impressive. Good for you either way!

Haha, I also thought he probably has a wife that watches too much HGTV and is full steam ahead on remodeling the house no matter how much further they are plowed into debt.

I'm wondering if it's a sitcom?

Save money for repairs and renovations. That means work extra hours for it.

While I genuinely appreciate the time you took to offer sound advice, and I have already given the idea of working a second job serious consideration in the past, working full-time and attending college to complete graduate school feels like having two full-time jobs already. This leaves little extra time for working a second job that will pay any decent money to save up for repairs that require immediate attention. By the time one finishes a 40-hour workweek and then works another 20 to 30 hours part-time, there isn't much extra left on the table after the usual deductions and Uncle Sam takes his cut. I'm trying really hard to work 40 hours and finish my MBA program so I can break free from the $16 to $18 per hour rut. It is quite challenging to accumulate any reasonable cash surplus on $500 (or $2k a month) each week to pay the mortgage, gas, water, sewer, electric, money for gas and auto insurance and maintenance, groceries, etc. It has been said that the federal poverty line is around $14k per year; I think they need to reconsider that figure. It is hard to get by on $34k a year in 2023 (and that is before any deductions). They ought to make it so that you pay your usual taxes for a full-time job but make the second job tax-free (or reduce the taxes at least) to help those making less than $40k a year get the most out of their money. Not to go on a tangent, but the government needs to start putting the taxpayer first and put the rest of the world second, instead of buying the latest military toys and giving money away to fight issues and provide financial support outside of our borders. If the federal government has tax money to waste year after wasteful year, then they don't need to raise my taxes. Local taxes, yeah, sure. These go to sustain emergency services and other stuff needed for community upkeep. It’s funny how these fat-cat politicians in positions of sinecure have it made living the easy life without giving much thought to solving issues here at home. There was once a time when a high school diploma, a good head on your shoulders, and a solid work ethic was enough to get a middle-class level job. Not anymore! That’s just my two cents…

Or fail and take a loss and still have the loan...

Wouldn't it make sense if the APR on heloc is lower than your mortgage

Right he didn't address anything

So he bias it shows considering he never gets to point or offer othe options

Safest way and hey if it gets you there why not rather be a 70 year old millionaire than a broke 70 year old

He used real estate, but preaches to others no debt. He used debt, but over leveraged himself. Most of the people he deals with cannot carry good debt, so he treats them accordingly, but people use debt to make money, nearly all businesses operate like this. I carry good debt that makes me monet, rentals. As it goes, they snowball, and get paid off quicker. Rinse repeat.

@@relsidebr4785 Because the majority of people don’t keep the same job for longer then 10 years it’s a different world. Even if you want to keep that job for 30 years you could make it 19 years and get let go. Everything is a risk even keeping a stable job is a risk now of days.

@@neilsmith9066 I left a $130K private job to take a $65K gov't job. really hard to get "let go", from a legally mandated position

@@aolvaar8792 congrats for you

Great to have for emergencies, I have a 50k one sitting there costs me nothing to keep. My emergency will be down payment on another rental.

Dave says no. Let the roof fall in all the while saving cash. 😂

Nope. The caller simply can't read. Plenty of other comments here explaining why.

@@amireallythatgrumpy6508 congrats, I don't spend my free time reading thousands of other people comments. I don't read other comments except to mine. 😂😂😂😂😂

I'm sorry you hate women so much K Roddy. You might want to call in to Dr D vs commenting on DR's posts.

@@truthseeker6370 No hate just observing that trend. Wife+House= incredible bad financial decisions.

​@@truthseeker6370nothing wrong with the wife wanting to do something with the house. Made our value go way up for a really nice profit.

@@siegfriedbraun5447 And so many more where the opposite happens. We have friends that have always made more than us that have continually borrowed against their equity to do renos and now owe a large amount on their home. We paid ours off a couple of decades ago, gradually worked on it and now own a pretty expensive property freehold. I no longer have to work and he will likely work until he dies.

Interest rates on HELOCs I have closed recently are between 10-18%

You're half right. They're both predatory and asinine.

I have one with zero balance for emergencies like down payment on another rental property. But most people will use for consumer debt. Saying a bank is predatory is like saying water is wet, it's up the the consumer to be responsible.

I used one and had the opposite experience. I basically had sn investment property that I got a HELOC on in 2018 or 2019 at 4.25%.and I maxed it out to buy another property. Initially the monthly payments were high, but unlike a mortgage each payment made the following payment lower. I eventually got a traditional mortgage on the new property right at the point property values peaked before the rate hikes and paid off the heloc. I can see the potential danger in them, for example I could have easily used it for a series of expensive vacations, but if you're responsible they can be great.

$25K isn't really ridiculous. That's probably underestimating for that job. You can easily spend 15K on a basic no frills kitchen!

Did you listen? He said they have other higher priority things to save for first. 6:52

Watch the video again. He said the project will fall on his priority list meaning it's not a top priority now.

@@MrTmenzo For me, something that is wrong on a post, is a high priority.

@@jimmymcgill6778 Must have an unstable job?

@@WoodUCreate John doesn't. A rotten porch is a priority.

Nope. You clearly weren't paying attention at 4:40. Turns out the caller simply can't read!

LOL

You're that idiot that doesn't realise Americans are as dumb as a brick, aren't you? NEXT.

@@amireallythatgrumpy6508 I know full well of that. check mate

@@bobcostner2238 You clearly don't, as you're one of them. That's not how check mate works.

Agreed I have a 50k one sitting in the bank with no balance. I keep it there for emergencies, like finding the perfect rental property and needling the down payment right away. It's a good tool to have in your toolbox.