First Investment Property, 1/2 portion?

[Alex Conway]

I am going to preface this with I fully anticipate going in and talking to a real-estate attorney prior to committing to anything but I am hoping to gather ideas/questions to go into that meeting more prepared. I always value the advice put out from this forum.

I'm 28, married, Mechanical Engineer background

My grandfather has passed away and left his single family home split 50/50 with my mother and her brother. My uncle is unfortunately in a place in life where he is only interested in getting his money out ASAP with no interest in even cleaning up the house.

This house is local and needs some work due to neglect but all things I am capable of doing on my own. I have had a Current Market Analysis done by a realtor who says in its current state the house is worth about 350k and with upgrades/sweat equity costing roughly 10k in materials he would expect 430k.

Really I would like to preferably buy out my uncles portion and rent it for cash flow, or at the very least buy out my uncles portion and flip it possibly depending on where the market goes in the short term.

Unfortunately, I don't have the cash on hand to outright buy his portion without tapping heavily into retirement accounts which I have no interest in doing.

Buying and flipping seems significantly simpler from a paperwork standpoint. However, my preference is the rental route.

Now for the question portion:

My parents are willing to stay in at their 50% stake for either option. I'd like to pick up the half or even a 40% stake and then overtime buy out their portion. What is the best way to buy out my uncles portion? Pull equity from the house and work out a loan with my parents? Get a mortgage on half of the house in my name? My parents name?

Long term what is the best way to make sure we can take full advantage of tax benefits? I have significantly higher income to be offset by tax benefits but again they will have at least a half share starting out?

Side note: My father has two other rental properties currently and familiarity with the rental process. I have the technical skills to do any updating or repair as well as day-to-day maintenance.

Thanks,

Alex