Father will retire soon, how to use REI to start generational wealth

[Kristofer Marsh]

My father will be retiring in the next 2 years. He lives in a suburb of Baltimore, MD, and is about to close on a house in The Villages, FL, which he and his partner plan to rent out for a couple years until they are ready to move.

My dad has agreed to work with me to explore options for using his current home as a springboard to help our family begin the path to generational wealth. No one in my family has ever seriously invested in real estate before.

Initially, we thought one idea would be to do a cash out refi on his curent home, which would net him around $100k to add to his retirement coffers, and then rent out the home, the idea being to let it appreciate and cash flow. I would help him manage it from a distance and we would split the cash flow. The house would eventually be sold or left to me and my other two siblings.

I see issues with this but overall think it could work. Issues being: if he doesn’t sell within three years he’ll be hit with higher taxes, also the fact that a refi would mean higher interest rates and less cash flow, and of course the potential pitfalls of hiring a PM.

Another thought would be for him to sell the house and go in with me as a private lender where we split cash flow and equity on a BRRR or a MF unit. The idea being to create the "infinite money loop" using the same cash to invest and build a portfolio. This option does not involve my siblings, at least I'm not sure how it could (they probably would not be able to assist in deals/management etc.).

Are there better options to build generational wealth with this scenario?

Who would I even talk to about this? I assume a CFP who understands REI, but I'm not sure the best way to find those people.