[underscore]

ok, your friends are, simply put, idiots.

The $1k - they should have mentioned much, much earlier. I can understand how you'd want it as it came from a friend but they waited too long.

The $20k reno - talk to the parents prior to moving out, see if they're willing to pay any or it back, but don't expect much if anything. your friends are the ones who dropped 20k to reno the basement, chances are it could have been done for a lot less.

The babysitting - don't the parents get a combined 1 year off from work for maternity leave? so if the wife is pregnant now, and they're asking about babysitting, are they not implying that they will still be living in the parents place a year or so from now when the maternity leave runs out? that's 3 years they'll have been living there by that point. Also consider that retired people who have already raised their own kids most likely do not want to spend 8 hours a day with a newborn baby.

The condos - your friend is again an idiot for trying to "keep up with the Jones'" by buying 2 condos because he thought he was behind everyone else. fuck everyone else! do whats right for you. 40 year mortgages are long and kind of a bad idea as well.

so like many other people said, they need to MOVE THE FUCK OUT. sell one or both of the condos. even if they take a bit of a loss, if they had zero down on the one, and have renters paying it off, anything they do get out of it is really just free money. relax more and find a solid daycare on one of their commutes. oh and do not let these idiots have another kid, one traumatized child is enough.