Parents' Home Equity

[Amul Sutaria]

Hello Friends!

I'm brand new to BP, and I'm excited to get feedback from you all on how I can start my REI journey!

Basically, my parents are retired (engineer and doctor) and own their home. Its not in the best condition, but its in an expensive area in New Jersey.

My parents want my wife and I to move in with them (yikes), but my conditions are that we get a bigger house and move more west (Parsippany, NJ area).

I feel like this a great opportunity to make some money for further investment, as well as buy a new house for my parents and my wife.

The house my parents live in is a 4 BR, 2.5 baths, and a house down the street which is smaller and as old sold for $537k. My parents bought the house for around 400k, but that was 27 years ago.

Should I get a home equity loan and fix it up and try to sell it? or is there some better advice someone can give me?

I figure if i can put $50k into rehabbing the house, it would be much more attractive for buyers. Stepping into the house right now is like stepping into the 80s... lol.

Thanks in advance for suggestions/advice!

PS. My parents and I get along just fine. We come from an Indian background where joint families are still normal. I am not trying to piggyback from their hard earned money but I want to live with them and take care of them, but at the same time be comfortable and have space. They are older and don't wish to rack their brains trying to invest. They trust my judgement. :)

[Bill Gulley]

Sounds a little strange, parents want the kids to move in? You need a loan for repairs, what kind of doctor and engineer were your parents? Give YOU an opportunity to make some money, thought you said it was your parent's home.

A doctor and an engineer and you're newly wed and you're buying them a house?

I'd suggest you talk to your parents, they are professionals and probably can think through this issue pretty well. I doubt you should be getting a loan.

I have kids, LOL :)

Obviously you used the edit to add the PS, so I did as well. Borrow from them first. I understand the cultural thing, but consider their wisdom, I'll be babbling on my death bed before my kids told me how things would be....LOL