Kim and her husband are relocating. They wonder if they should take on debt in order to fix up the house they're selling. Dave has a short and simple answer for them.
QUESTION: Kim and her husband have a home in Omaha, NE, they need to sell because they’re relocating to another part of the country. She knows Dave hates debt, but she asks if it would be okay to borrow money to fix up the house so that it will bring in more money. Kim says the house will bring about $200,000 with the work — which includes a new roof, exterior paint, carpeting and some concrete work — and in the $180,000 range without. Dave’s answer is short, simple and to the point.
ANSWER: I’d just sell it. From what you just described, you’re planning on putting in at least $12,000 to $14,000 in order to get $20,000 more. Just sell it “as-is” if you can $180,000 for it as opposed to $200,000. I wouldn’t go to all that trouble for $5,000.