Buying my first investment home from my grandfather questions

[James Goss]

Hello BP!

As like many BP forum post, I am a newbie and have little idea as to where to begin this deal. that being said, I do have a strong basic understanding of what I believe to be the fundamentals of RE investing. (thanks mostly impart to the folks here and the podcast!)

I'll try to be as brief as I can while still giving some background here:

I've been saving money to invest in my first real estate property for rental, while still living at home with my parents. (sweet deal, right?) I told my grandfather *who owns his home free and clear, however is now renting the home he owns and living with my aunt since he is no longer able to live on his own* He offered to sell me the home he owns at a price below market value. I'd certainly love to be able to purchase this home, however it is only a single family and I was really determined to buy a multi-family property.

My problem here is, i'd hate to spend the money I've been saving for first multi-family on this single family home, although it is in a nice spot and I think would be a great place to have in my portfolio.

So, does anyone have any suggestions on how I can fairly structure this deal so that:

1) I can pay the asking price as a lump sum to my grandfather at closing (seller financing doesn't seem fair in this situation and could get hairy, considering my grandfather is 85 and many of the seller financing deals are for 30 years.)

2) I could hold on to the money that I have set aside to invest in my first multi-family place (essentially I would like to put low or no money down on this deal, maybe Brandon's book could help!)

3) LONGSHOT! Is there anyway that I can keep this from affecting my debt to income ratio? I'm afraid that if I was to get into this deal that I would get denied for the loan on my next property. obviously there are other ways to finance the next deal if need be, but best case scenario I could still use regular financing for the multi-family. I will have 10k saved by may 2017 and that is when I plan on entering into a multi-family property.

to sum this all up....Any chance that I can have my cake and eat it too?

THANKS!!