Creative financing: father in law heloc, and brrrr

[Tyrell Rutledge]

Howdy everyone I am new here in okc and wanted to reach out to get everyone's opinion on my plan and hopefully some recommendations on some stuff.

My wife and I are interested in trying some creative financing strategies because we want to retain our cash reserves at this time. We are interested in finding buy and hold deals for ourselves.

My father in law recently moved from his free and clear property south of tinker to his retirement home in Tuttle. He is nearing retirement and was thinking he would sell his tinker home to finance upgrades to the Tuttle home. I have proposed that he turn his 3/2 1800 square foot home into a rental that I could manage to gain experience. Furthermore I have told him about how he could use a Heloc on the property to become a short term money lender to fund my brrrr strategies and earn more money from the interest I could pay him for being my hard money. We all have a really good relationship and I'm wanting to make this a win win for everyone. What does everyone think about this?

Do you think I should consult with a CPA before we start renting? I am looking for an investor minded CPA in okc for my long term plans. Also are the landlord forms here on BP a good deal or should I shop around with someone local. I have the forms that were included with The book on managing rental properties. 

Thank you for your time everybody! 

Ty.

[Cassi Justiz]

Since you are looking at mixing funds (his renters and HELOC to help with your investments, etc) I would consult a CPA to make sure your documentation is solid and there aren't any weird technicalities that you need to be aware of.

As far as managing his rental, I would also dig into that a little more. I know legally you have to be a licensed broker to manage properties for other people in Oklahoma, but I don't know how far that extends for family properties. 

I haven't looked at the BP landlord forms, but there is a standard residential lease form that the Oklahoma real estate commission has online that you can use if you don't find another one that you feel comfortable with. Free to reach out if you have any questions. 

I think overall you are on a good path. Funding buy and hold investments using the BRRR strategy is a great idea, especially if you can get access to low cost money.