Family member allowing me to use their HELOC to buy properties

[Orhan Memed]

What’s up BP!? I recently came across a close family member who is willing to take out a HELOC on their home and allow me to purchase additional properties. A little background on myself: I just purchased my first home and it turns out to be a 4plex. I would eventually like to do REI full time and quit my current job. This family member’s primary residence is paid off and the value of the home is $500k (the heloc would be for $400K but I wouldn’t use the entire all at once. The projects I’m looking at are around half that.) They are on board with my outlook on the properties which is buy small multi units that need some love, rehab them, rent them out, refi, and pay off the HELOC. Then start all over. Would it be a better idea to this under an LLC with them? Chances are we’ll split everything 50/50. Or maybe 70/30 if I take on the responsibility of paying the line each month and taking on the bulk of the work. Lastly, What are the tax implications for them, If we do/dont an LLC THANKS ALL!!