All Forum Posts by: Philip Claessens

I wanted to buy the house. Refinance out 125k. Use that for the ADU. ?

I live in Ca. I am going to purchase my parents home for 375k it is worth over 600k. I want to take about 125k out and have a approx 150k Loan.

What would be the best way to navigate this with lenders?

What type of home insurance coverage should I have. This is my first rental home.

Thank you both for the info.

I would like any insight on Ruskin Heights area if anyone has any info. Thank you.

@Tim Gordon does that logic make sense or am I being overly confident?

@Tim Gordon Yeah they will be living rent free for the rest of there lives. They will be giving up around 100+k in equity, but this will allow them to stay in San Diego, all of our family lives here. I have some money saved currently. Also I am a federal firefighter and my wife works full time as well. I feel utilizing the HELOC isn't that risky only because I have a super secure career and I would be able to pay it even if I took a big hit on a deal.

All of this talk is super helpful and is opening my mind to different things that can happen. Thank you everyone for the input. Every thread of information I can get is appreciated.

@Twana Rasoul my parents have a modified loan currently and they don’t have good credit to get any type of loan. They could sell their house and move out of state to retire. But they don’t want to move away from grandkids.

@Christopher Lombardi

Hi Chris,

I read that the gift in equity would allow me to not have to pay a down payment. If that’s not the case, it really throws a wrench in my plans. Thanks for the info. I’ll have to research more on that.

Hi everyone,

My parents are about to retire. They didn't save anything for retirement and will be living off SS checks. They owe 375000 on their home and its worth about 600000. I have been talking to them about buying their house for what they owe, selling my house and building a granny flat on their property for them to live in. I would be using the 100k from the sell of my house to build to granny flat. This plan would allow them to retire without worrying about so many bills. I then could get a HELOC and utilize that to begin my real estate investing plans.