All Forum Posts by: Gerardo O.

Curious to gather everyone's insights on what the best approach to paying off the remaining balance of an existing mortgage (CA) is, while setting the proper foundation to build future wealth through a portfolio of properties.

My parents still live in the house I grew up in (Central Valley) + don't plan on leaving for several decades. With my dad's job taking a hit due to the current pandemic, he's asked me to find the best way forward. Is it best for me to:

A) Assume the mortgage and pay it off outright. Then save again for another few years, until I have enough for a down payment on a property where I am (Bay Area), that I can house hack or, 
B) Assume the mortgage and pay it off over time, while deploying some savings towards a down payment on another property in my hometown (I go back every 2 weeks) - handling 2 mortgages at once. 

I could just pay the mortgage and leave it under his name, but I figured if I can build credit then why not. If there is another option I should be taking into consideration, then please let me know because I am here to learn. Any advice on things I should look out for (taxes, unexpected costs, due on sale clauses, etc.) would also be greatly appreciated.

Thank you for any wisdom you can share in advance!

Best regards,

Gerardo

Thank you for for responding @Nathan Gesner! I'll follow the route you suggested above, helping them pay down the mortgage, which is what I have been doing already. I planned on just taking it over, no rent, and there's no risk of losing the home/selling anytime soon. Was just curious to learn if there was better ways to approach the situation. Glad to hear that I wasn't completely off the mark.

Howdy - long time BP listener/reader; first time poster.

Curious to get your insights on what the best approach to paying off the remaining balance of an existing mortgage (CA) is, while setting the foundation for building out a portfolio of properties.

The house my parents raised me in isn't winning any home design awards any time soon, but they came here with nothing and did everything they could to make it a home. I'm moved out and living elsewhere now, but they still live there and don't plan on leaving anytime soon. They were so close to paying it off completely once before, but had to re-up on the loan during the recession in order to avoid losing the house which essentially reset the clock for them - there's about 65k left to pay it off today. I've saved a good amount over the past few years and given everything they have gone through, I want to do something for them that will prove all their sacrifices were worth it.

The reason I posting this is because I am unsure if I should A) just pay off the loan outright, then save money again for a downpayment on a new property and go from there, or B) if I should just assume the mortgage myself and pay it off over time, while putting some savings towards another property - potentially handling 2 mortgages at once. If there is another option I should be looking into, then I am here to learn. Any advice on things I should look out for (taxes, unexpected costs, etc.) would also be greatly appreciated.

Thank you for any wisdom you can share in advance!

Best regards,

Gerardo