House hacking/moving my parents in

[William Hagedorn]

Hey all. Looking for advice on our situation. We bought our house in 2020 with the intention of a live in flip. When rates went up and we had another child that got delayed. We now have the prospect of buying another home in our neighborhood and potentially allowing my parents to move into this house in order to be closer to us. They cant afford to buy it - i dont want to sell it anyway. Our options could be they rent it from us below market (im expecting great appreciation in time) or possibly gifting us the money to pay off our note over a couple years but live rent free. I think we’d keep it in cash given our note is 3.11%. Today we have access to 125k Heloc or sell completely for roughly $400k/180k in equity. 

What am i not considering?  What am i thinking of correctly/incorrectly?

thanks in advance 

[Alex Deacon]

@william 

@William Hagedorn If your parents could cover the mortgage or even something close then I would hold onto the property and use the HELOC to buy more properties. If you feel the property value is going to continue o rise and the house is not going to cost a lot to maintain over the next 10 years it may be best to keep it. The nice thing about selling now would be not paying any tax on the gain since its your primary residence. You have to weigh the pros and cons. Also putting a value on having your parents nearby is difficult.