Inquiring information and advise
My goal is to begin house hacking in the Bay Area within the next two years. But until then I am paying off substantial debt hence the 2 years goal. What's putting me in a bit of a financial and strategic bind is my parents' home.
My parents are retired and are considering taking out a $150K HELOC. The home is worth around $630K, they owe roughly $310K on the mortgage, and the current mortgage rate is 3.25%.
The idea is to use the HELOC to pay down our debts, make some renovations to the home, and possibly use the remaining funds to help position me to purchase a duplex or triplex and start house hacking.
If you were in my position, what would you do? Wait until all debt is paid off then consider the HELOC plan or move forward with HELOC now. I've already ran the numbers with my debt and the potential cost of the monthly payment for the loan and I would be able to afford it but funds would be tight. Are there any lenders or experienced investors who have advice on how to strategically approach this?
I know this is a tricky situation, but any and all advice is helpful. Thank you!