kannon
Recycles dryer sheets
Morning
We would like to help our children get into a house of their own. They both have good jobs and are saving up. We are retired with what I believe is available 401k funds that could be used to help them get into a home. Right now this 401k money is about 30/70 so I know that Bonds/Cash are not doing the greatest. So thinking use some of the Bonds/Cash in real estate investment to get a better return.
So ... some options I have been brainstorming:
1) help with down payment/closing cost. Straight forward, helps the kids get into a home sooner than later. In my mind puts 401k Bond/Cash into a real estate investment so, while not helping our investment return, for the overall family it's a better use of the money.
2) do a seller finance mortgage. We basically become the mortgage company, charge a reasonable interest rate - and for right now that be better than bonds/cash. So an improvement .
3) now this is the one that I find intriguing as I have never venture into this and I think some folks on here have. We purchase a second home as a rental property investment, and have one of the children as our tenant paying reasonable rent. By my estimation, I can offset the income with interest payments, property tax, repairs, and depreciation. I believe this would reduce our overall tax bill (as rental income be less than all expenses) and we get real estate appreciation (vice Bonds/Cash from the 401k).
So .. appreciate any thoughts or experiences parents have done on here to help their kids. I have no worry about the kids paying rent or maintaining the house, they are good kids, just trying to help them out now rather than later when they inherit our estate.
Thanks
We would like to help our children get into a house of their own. They both have good jobs and are saving up. We are retired with what I believe is available 401k funds that could be used to help them get into a home. Right now this 401k money is about 30/70 so I know that Bonds/Cash are not doing the greatest. So thinking use some of the Bonds/Cash in real estate investment to get a better return.
So ... some options I have been brainstorming:
1) help with down payment/closing cost. Straight forward, helps the kids get into a home sooner than later. In my mind puts 401k Bond/Cash into a real estate investment so, while not helping our investment return, for the overall family it's a better use of the money.
2) do a seller finance mortgage. We basically become the mortgage company, charge a reasonable interest rate - and for right now that be better than bonds/cash. So an improvement .
3) now this is the one that I find intriguing as I have never venture into this and I think some folks on here have. We purchase a second home as a rental property investment, and have one of the children as our tenant paying reasonable rent. By my estimation, I can offset the income with interest payments, property tax, repairs, and depreciation. I believe this would reduce our overall tax bill (as rental income be less than all expenses) and we get real estate appreciation (vice Bonds/Cash from the 401k).
So .. appreciate any thoughts or experiences parents have done on here to help their kids. I have no worry about the kids paying rent or maintaining the house, they are good kids, just trying to help them out now rather than later when they inherit our estate.
Thanks