Using Home Equity for Real Estate Investment

[Edgar Gonzalez]

I need advice on my current real estate situation. My mother gave me a house she bought in 2010, and its value has increased significantly since then. My real estate attorney advised against putting my name on the title due to tax implications. I want to use the equity from the house to buy more real estate, but most lenders require my name to be on the title to prove ownership. Additionally, my debt-to-income ratio is high. Should I consider taking equity out of the house to invest in more real estate, or are there lenders who can work with my situation?

[Chris Seveney]

Quote from @Edgar Gonzalez:

@Chris Seveney

That’s right. And I’m currently living in the house. 

 To answer the initial question - I would say NO. Reason why is you are basically getting 100% financing on a property and using the other as leverage. You would need to put the home in oyur name which could have tax consequences then you are getting a loan to buy an asset which most likely will not cash flow. Unless you have considerable cash as well to put down on a home I would say not to do it.