IS THERE A BETTER PLAN

[Ronell Smith]

Good Evening. I'm a newbie in regards to real estate investing. My parents want to give me their house, which has no mortgage. Appraised value of the home per taxes being paid on the home each year right now is $80,000. Average value of comparable houses in the area average out to about $114,000. The square footage of the house is 1417 Sq Ft - 3 Beds - 1.5 Bath. Structurally the house needs some repairs - (3 ceilings need to be repaired, Walls need to be painted, Floors need to be redone, Kitchen and Bathroom make over needs to take place, and last but not least Central Air Conditioning needs to be restored. Also one of the rooms could easily be converted to an additional room to add value to the house). I estimate that 30 - 40K in renovation could increase the value of the house. I've been looking at you tube and I've been trying to come up with a strategy to upgrade the house and then put a tenant in it after the rehab phase. So here's my plan of action that I would like to be critiqued. I would like to have the house gifted to me by my parents. Then purchase the house with my LLC. Then use a line of credit on the house to do the renovations. After that I would put a tenant in the house to pay down the line of credit, and also establish cash flow from payments received from the tenant. I would then have the house appraised again, and use the additional equity to purchase a multi family unit so that I could begin house hacking, and creating additional cash flow. Does anyone think this is a sound plan or should I utilize a different method in regards to execution of positive cash flow?