HELOC / Lease to Own

[Tyler Kesling]

I'm still looking for my first property and I have a lead, sort of. My brother needs to move back to the area and found a duplex fixer upper. He wants to live in one and use the other for his studio. He and the seller have agreed on $118K. His credit score is fine but his income is showing too low to get the loan, so I though maybe I could use my HELOC to make the purchase and do a Lease to Own. He has $50K to put down and plenty to do whatever renovations he would want to make. I'm not concerned about his being able to make the payments and trust him to do so. I'm struggling a little bit on deciding the best agreement to make sure I can get some cash flow, payback the HELOC, and not drive the new mortgage up too much with the Refi out of the HELOC. Thoughts? How would you structure this?