Family House Hacking Feasible and/or Smart?

[Bart Esparza]

Newbie trying to learn and exploring some creative ideas to start investing.

My Sister and I inherited a family property (50/50) with only 30K Heloc/mortgage that we have invested 20K between us to renovate and are preparing to sell with a market value around 400K in Santa Clarita, CA.

Expected 325-350K profit to split between us two minus taxes/capital gains?

I am interested in investing out of state due to living in high cost area but am exploring idea of first purchasing a larger 4-5 bedroom house in 600-700K range here in Santa Clarita with my Sister that we can potentially get with FHA minimum down and keep capital for other future real estate investments. Idea being we all live together and even move our parents in so parents can rent out their local 3br/2bath townhome for $2500-$2700 market rent and help them build their retirement savings.

I desire to move out of CA eventually and work in medical field as a PA currently making 140K with ability to relocate jobs nearly anywhere in country. I have 50K in savings, 720+ credit, currently before the pending sale.

Does it make financial sense to get in debt 600K+ in debt (co-signing with sibling) in my current high cost/Los Angeles region? I realize that this would not be a cash flow property but my aim to provide immediate benefit to my entire Family, preserve capital, build equity and perhaps start looking to purchase a good opportunity out of state such as SFH or multi family property as investment with around 200K capital.

My Sister also desires to move out of state and we

are in agreement to rent home and move our parents when we are ready to each move on/purchase our own houses.

Welcome any thoughts. Thanks!

Bart