Vacation Home Question

[Chris Davey]

I have a potential sweetheart deal; a friend's parents have a vacation home, their next door neighbor has offered them the house for sale at what the home was originally purchased for, Let's say the cost is offered at $250k with the est. value of the home at least $315k. It is the same type of house as my friends parents. My friends parents have offered me the opportunity to purchase the house from the neighbor. If my estimated purchase price is $250k and I have only $25k to put down not the full 20%, since I will be getting instant equity what is the best way to get out of the PMI? Can I use the equity or a HELOC to pay down the amount of the mortgage?