Starting my First Real Estate Investment

[Teddy Celeste]

Hello Everyone!

I am new to BiggerPockets and I believe I have a good opportunity!

Complicated situation so I will try to be as clear and detailed as possible based on my knowledge of real estate:

I will soon inherit 25% of a paid off house (purchased in 1978 for $60K) from my Mom who passed away about 5 years ago. My Father owns 50% of the house and it is possible that my Dad owns 100% depending on the verbiage on the trust – but regardless my Dad says the house is split between him, my two Sisters, and myself 25% each. My family want to sell it (worth about $625K) and it has been rental property for the past 5 years. I want to keep it and I have renters paying $2,800 a month. Aside from this I do not own a home and my wife foreclosed on her home about 2 years ago.

I would like to get into real estate investing and I want to buy out my family. I am trying to figure out how to do this correctly. Here are the options I thought of based on what I know:

• 1.)My Father sell the house to me if the house is completely under my Father
• 2.)Apply for a HELOC loan and if approved buy out my family - about 300K (100K each) which has been discussed with them and I would possibly like to take out more (~100K) to purchase either my own property or use it to start house flipping. This would leave me with 225K of equity in the house and I would possibly be positive assuming the monthly payment on the HELOC is 2k to 2.5k a month since I charge 2.8k in rent.

My goal is to keep this as rental property since I have my aunt and her family living in the house and I know they will be there for quite some time. Selling the property outright is not an option because of the tax implications.

Any comments or suggestions? Or am I going about this the wrong way?

Thanks!