Looking for a HELOC, June 2018

5 Replies

Good evening BPers,

My parents are in their late 60s and early 70s, both are looking to retire in the near future. Their retirement income/expenses projections show them running a $4k/mo deficit. The idea is to secure a HELOC on their home (I'm open to other suggestions) in order to invest in income properties out of state.

I'm hoping someone can direct me to a product that meets our needs. 

The stats: 

My parents have a duplex in San Francisco. One side is their primary residence, the other side is a rental. 

At the end of 2016 we locked in a VA 30 yr fixed at 3.25%.

The current balance is $462K. No other debt, secured or unsecured.

The appraisal came in at $1.158MM.

Credit is over 820 for each parent.

Combined gross income is enough for most products available.

Please let me know if you have any suggestions, referrals, strategies etc.

Thank you!

They probably need to speak with a bona fide financial advisor.  You are talking about their ability to thrive in their retirement years.  Selling that property and moving to a cheaper locale would go a long ways towards generating a next egg. And any idea posted here, including that one, may not be in their best interest.  

Thank you for your reply and your concern over the idea @Kerry Baird . The meeting they had with the FA is how they came to learn of their projected monthly deficit. They specifically want to stay in SF and use the equity in their home to invest.

Originally posted by @George Nyquist :

Good evening BPers,

My parents are in their late 60s and early 70s, both are looking to retire in the near future. Their retirement income/expenses projections show them running a $4k/mo deficit. The idea is to secure a HELOC on their home (I'm open to other suggestions) in order to invest in income properties out of state.

I'm hoping someone can direct me to a product that meets our needs. 

The stats: 

My parents have a duplex in San Francisco. One side is their primary residence, the other side is a rental. 

At the end of 2016 we locked in a VA 30 yr fixed at 3.25%.

The current balance is $462K. No other debt, secured or unsecured.

The appraisal came in at $1.158MM.

Credit is over 820 for each parent.

Combined gross income is enough for most products available.

Please let me know if you have any suggestions, referrals, strategies etc.

Thank you!

 HELOCs are great for short term things like flips, not great for long term buy-and-holds since they are ARMs.

They could probably pull another $350k or so out of that one as a VA cash out refinance. Not sure if that would do the trick or not.