Personal Finance Review with HELOC and Real Estate
Home - outstanding mortgage $237K @ 2.95% renewal Jan 2023
Other Debts: Credit Card $1k, Car Loan $37k, HELOC $203K
Credit Rating : 775
We are able to afford automated payments of $2600 + $700 (interest) per month on HELOC ( I hate debt )
Due to our aggressive HELOC payments, we choose to be barely cash flow positive with just around $800 per month into savings.
> We originally took out HELOC for down payment on investment condo that will be ready in Summer 2019. So, at the time it was good debt to take on.
> We have $50k in stocks that I was willing to sell for the condo closing costs or I would dip back into the HELOC
> 1 teenager that will be entering university in 2 years and another in 4 years. Both will have a good RESP cushion of atleast $50k each. However the 2nd teen seems destined for a medical career... so we will need more funds to ensure she doesn't go into debt for school
> Do I sell stocks for closing costs or use HELOC
> I am seeing Real Estate opportunities coming up in the next 6 months, do I increase my HELOC and dip into it again for a real estate investment? Maybe get a condo downtown for kids (when in university) with a roommate?
> Should I just close my eyes and be content with the single condo and keep on paying down the HELOC
> Should I even bother with the $800 savings and just put it all into HELOC since savings won't grow
And finally... i should've probably asked this before my real estate investment...
> What is payment plan for others that take a HELOC for real estate investment? How is it paid off so you can feel that you have an investment with no credit debt? Do you re-mortgage the real estate investment to wipe out the HELOC?
Thanks in advance for feedback...