In-Laws want to retire in 2 yrs, but may not make enough..

[Courtney T.]

My In-Laws are getting close to full retirement (he’s been retired 3 years and she has a couple more to go). Their income is not what it needs to be and they’re looking for additional streams. Keep in mind we live in the Bay Area (East Bay)

I’m turning to my friends at BP. We’re evaluating a few strategies/options for them to get into a smaller home and rent out the larger home with a tiny mortgage. I’m thinking they could get at least double what the payment is by renting it out...

1. Getting a hard money loan to cover the purchase of the new home. Seems challenging and costly. How would pay back happen should something happen in the meantime??

2. Borrowing against her 401K - can you do that nearing retirement???

My preliminary research is just that, preliminary. If you have any other tips advice outside this perspective please dish that out too!

Thanks all!

Courtney