House Hacking Help

[Ryan Chase]

My name is Ryan, and I just joined BP this week. I want to get into REI and I'm looking for some help figuring out whether/how to pull off a house hack.

• We currently own a 3bd/2ba split level, appraised around $168K two years ago. 
• We have a 15 yr mortgage at 2.75% and owe $118K. P&I payment is $947, plus $282 to escrow each month ($1229 total). 
• We have $30K cash available and two incomes. (But some of that cash is in our "emergency fund", so I don't think we would want to put all of it toward our next home.)

Here's what makes our situation challenging: We have twin sons (3 yrs old) with a severe disability. They have trachs, ventilators, and feeding tubes, and require 24/7 nursing care. A split level is terrible for wheelchairs, so we are looking to build a custom home that accommodates the boys.

If we didn't need to move ourselves, I would start looking for rental property. But our immediate need is a home that works for us. So I'm trying to learn what I need to do to keep our current home and turn it into a rental. Similar properties in our neighborhood rent for $1425, but conservatively, the range is $1100-1350.

My question: How do I leverage our current house? I've been reading about HELOCs and Refinancing, but I'm not sure how to calculate those potential payments so I can figure out cash flow. I want to talk to some local lenders, but I'm not even sure what questions I should be asking. Is it even possible to use a HELOC or cash-out toward a down payment on our next home?

Thanks for sharing your time and knowledge!