Should I Buy Grandma's House with Subject-To Financing??

[Keisha F.]

Hello Everyone!

I got so much feedback from my last post...HERE, and now have the opportunity to purchase my grandmother's well-maintained 2-family house in Chicago with the equity from 4-family brownstone in Brooklyn. My grandma is willing to sell her 2-flat to me as-is for $180k, she has a $130,000 mortgage on it currently at a 4.6% interest rate. The current value of the home is $220,000. It needs some work, mostly cosmetic, and I have the option to convert the basement into a 3rd unit. Ideally, I would like to get use seller/subject-to financing to assume her current mortgage payments at the 4.6% interest rate, use a HELOC from my Brooklyn property to pay her $20k down and rehab the property. I would then rent out the units, get the property appraised, and take out another HELOC to keep investing...ultimately an even more creative version of the BRRRR method. My goal is to take advantage of seller financing, spending little money upfront, and keeping her current interest rate. Is this scenario possible and if so, how do I avoid the due-on-sale clause? ...as I can see the bank calling the loan due since interest rates are so much higher now. I know this is a unique scenario so please let me know if I'm nuts for attempting!