Should I convince my parents to get a HELOC

Should I convince my parents to get a HELOC

Investor · Simi Valley, CA · Member since 2016 · 26 posts · 6 votes
Hey BP community. I own two 1br rentals and have had great success the past 3 years with them. I'm still renting a room as a primary residence but really, with all my heart, want to house hack. I'm on a teacher's salary and have a little bit of debt. I've been pondering asking my parents to get a HELOC on their home but I would responsible for the payments. The amount would be 50k and I could use 30k to house hack , and the rest as a cushion to make the heloc payments. They have about 200k equity in their home. Thoughtson doing this?
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  • Rental Property Investor · San Diego, CA · Member since 2016 · 73 posts · 55 votes
    9y
    That scenario sounds like putting your relationship with your parents on the same playing field as a bunch of hidden land mines. Too many ways that can play out negatively. Save $30K with the same level of determination that you used to buy the other units and proceed forward with your own resources.
  • Ian WalshBusiness Member
    Lender · Philadelphia, PA · Member since 2016 · 2k+ posts · 1k+ votes
    9y

    There are a lot of other ways to get money besides a parents HELOC. I very much avoid deals with family money because I don't like the kind of business relationship it creates.

  • Investor · Simi Valley, CA · Member since 2016 · 26 posts · 6 votes
    9y
    Thanks for the advice. I agree with you. I'm just itching to get into a house hack after experiencing the success with the condos. Worried market will get too high in the future. But you are right about the strain on relationships with the family.
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