First Investment Idea - Tell me all the holes

[Jose Saladin]

I want to purchase my sisters house as my first investment. It would be a live in rental.

I would have one bedroom to myself with access to the common areas. I would rent the house to her. She gets the master bedroom and my nephew gets the third room. She would have access to all the common areas as well.

The house is valued at $320k 'ish. I can get her to sell to me for the current mortgage balance of$150k'ish. I can leverage my WLI cash value to purchase it outside the banking system.  

The goal is to purchase it in a land trust or llc. Use it to gain some experience as a landlord and in two years leverage the equity to purchase a duplex. And of course, take advantage of the tax benefits along side my current business income.

Viability of the idea?

Pros and cons?