Refinance vs Heloc for rental properties
Hello, any input is appreciated. HElOC vs Refinance? my mom has a house that has about 100k in equity. parents want to move to a smaller house and are thinking of selling the house to pay for a fixer upper cash to live in. i am wondering if I can ask them to be my lenders for rental properties or to partner up with me. My thinking is that we can use the equity to put a down payment on 1 or 2 rental properties. they can move into one of them and we can rent the property they currently live in. however my mom doesn't have good credit so i don't think they can refinance, so is getting a HELOC a better route? or should they sell the house and lose the potential is has to be a rental itself? what are somethings that i should consider in weighing the options of having them sell the house or rent it out? I want to create a packet the outlines the benefits if they sell it and loan me the money or if they refinance and rent it out and loan me the money as a HELOC? Yes is am newbie so this might even be a very embarrassing question, but please bear with me......