Two homes for the price of one

[Jeremy Arthur]

My sister was given my mother's home and it is paid off in full.  My sister would like to get out of this house and into a newer house.  She told me that if I can get  her a new house, she will give me my mothers house.  The house value is around $140,000, needs repairs in around the $40K range, and has a unit above the garage that is being rented out for $500/month.  I was wondering what the best option was for me to get her out of the house, have her mortgage be covered while in turn bringing in positive cash flow.  I don't currently have much money stocked away and would like some advice of those that have been in the business for awhile.

Jeremy