Should I use a reverse mortgage to invest?
The person I know is 76, he has $300k of equity in his property and wants to stop working full time .
My thought process for him is if he gets a reverse mortgage lump sum, he can invest that money into cash flowing multifamily, and can live off of the cash flow and when he dies the investment can be either (1) Sold to buy his equity back, or (2) the reverse mortgage refinanced and the cash flow paid for by the investment property.
What are your thoughts on this? Any holes/flaws? I'm searching for the best way for him to to utilize his equity NOW so he can stop working.