My parents own a vacation cabin that I would like to invest in. The cabin is worth $330,000 and they have a mortgage on it with a balance of $125,000. They took out $40,000 of their primary residence HELOC to remodel the cabin. I would like to take $70,000 and invest in ownership of the cabin.
I'm trying to come up with a simple calculation of what my ownership percentage will be if I do this. Should the debt on the cabin include the HELOC debt that they used for the cabin? What is the easiest way for me to get to 50% ownership? Paying more of the monthly mortgage until I get there? I would ultimately like to make it as simple as possible for myself and my parents.
We are refinancing the mortgage and adding me to the title and are planning to put together a contract so we cover all the contingencies. Thank you!