so my old man sold his house back home and now has 500k USD cash. looking to buy a 400k house. His plan was...put down 100k cash and remaining 300 will be mortgage. he'll get around 4.5 to 5 % rate.
so was thinking, out of that 500k he got, he'd use 100k for down and put remaining 400k in an investment that returns 5 % after tax year after year. not a risk-taker at all.
watever income his 400k investment will generate, he'll use that interest to pay off the house payments.
suggestions/comments/ideas pls. if someone has a better idea, feel free to shoot.