House Hack or Help With My Parents Mortgage?

4 Replies

I want to start my real estate investing career by house hacking. However, I have to choose between that or helping my parents refinance their home (which I live in). Depending on only one source of income from my parents has been rough, especially with $600K left on a mortgage. Should I help my dad refinance the house? Keep in mind, I've been also paying down student loans.

@Dilman R.   How did your parents end up with a $600K home and only one income and why do they need to refinance?  If they are refinancing to pull out equity, they should sell it and down size to something they can afford on one income.  Refinancing costs money and if they don't have the money, they are not putting themselves in a good financial position.

Originally posted by @Theresa Harris :

@Dilman Recinos  How did your parents end up with a $600K home and only one income and why do they need to refinance?  If they are refinancing to pull out equity, they should sell it and down size to something they can afford on one income.  Refinancing costs money and if they don't have the money, they are not putting themselves in a good financial position.

Dad used to flip houses and had rental properties before the crash, lost it all. Hasn't worked full time since and depending on mothers source of income to keep the house afloat. Need to refinance due to better rates and lower monthly payments by at least -25%.
Looks like selling and downsizing is the way to go. I want to start my real estate investing to build wealth and help them out. Do it differently and hedge my risks.

 

@Dilman R.   Sorry to hear that.  Why not look at buying a duplex where you can live in one half and rent the other half?  You can buy it with less money down and after a year, see if your parents want to move into the half you are living in and buy another duplex, assuming you have enough for a down payment and the bank will lend you more money.  It doesn't sound like they can afford their current house.

Originally posted by @Theresa Harris :

@Dilman Recinos  Sorry to hear that.  Why not look at buying a duplex where you can live in one half and rent the other half?  You can buy it with less money down and after a year, see if your parents want to move into the half you are living in and buy another duplex, assuming you have enough for a down payment and the bank will lend you more money.  It doesn't sound like they can afford their current house.

Yeah that's the route I want to go. Thanks for your advice!