Gifted a house with a mortgage... What to do?

[Jonathan Measor]

My wife and I were married last year, in June. We were gifted a house in Myrtle Beach by her parents. Since they themselves bought the property, deciding instead to remain in Philadelphia, nothing but a HARP Loan has happened. This morning I woke up, after last night's webinar, with fresh ideas in my head.

Please, tell me if I'm right or wrong, or if you have other ideas of "how to" or "not to." 

So the gift is the equity, we have to buy out the current loan to allow the transfer. Or we're buying them out at the payoff amount. We want to balloon the offer to capture that equity and rehab the place. Is this all the same as BRRRR, so far? Next, rent it at a higher price, and put the remainder back into the equity under our name. Then in some time, maybe six months or a year, refinance, repay the direct lender, and pick up something else. Is this the right idea? What am I leaving out? What might I be missing? What more or other stuff can I do?

Thank y'all!