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Victor
What would you do? My wife and I have aging parents that live in one of our rental homes close to our primary. We are at the stage where we believe it is almost time (within 6 months +/-) for us to help more and consider moving into a single home so that we can be of direct assistance. While our emergency fund has a decent balance, we don’t have funds saved up yet for a down payment on a home that has a mother in-law suite or something similar. Our current home doesn’t have much equity so selling it won’t result in the funds needed for a down payment. We’d likely keep it as a rental.
Two options we are considering for a down payment of a larger home for all of us to live in:
1) I have a 457 from a previous employer that I could access and use for the down payment. We would have to pay taxes but no penalties on the funds withdrawn.
2) Sell one of our cash flowing rentals (we only have two), which would provide more than enough funding for a down payment but reduce monthly cash flow (~$850) for our family. The current interest rate is almost at 3.25% 30yr fixed. We self-manage this unit and our other rental that the grandparents live in.
I’m leaning towards option 1 (cashing out the 457) but wanted to get other thoughts / opinions.
TIA!
KatelynnHave you considered renting the right type of home and rent out all your rentals? I guess it depends on how long you estimate them living?
You would still have all your rentals rate locked in place. So, you essentially have three homes?
If we are taking 20 years maybe that’s not feasible.
But taking the penalty on your retirement accounts is not a good thing to do.
Do they not have long term care insurance or able to get a home health aid?
JanuaryYou don’t mention the cost of homes in your area, but if there are any multifamily properties, you could purchase a duplex for 5% down and each have your own home, side by side. Might that be an option?
M AliceHELOC for new down payment? Having been in this family scenario, please plan ahead for all the inevitable changes that come with aging. Rough on a single person and brother in my experience, might be harder on a couple. What a world!
Have you seen: Best place to get rental agreements in Texas?
Best of luck to you!
ChristinaDo they want to live under the same roof? I have been through this and although my parents needed my help, they also wanted their privacy and space, so we never moved them in.
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