Have a unique opportunity to assume grandparents house.. should I

[Jerry Villa]

My grandfather just passed away and my grandmother wont be able to stay in her home. They've had it for 50yrs and its something we dont want to lose. They have a mortgage on the place that equals the value of the home (more or less) so she doesn't have a lot of equity in it right (or none). The house is not in good condition, needs a lot of work, so probably wouldn't be able to be sold in a traditional mortgage but instead ideal for an investor. 

I was told that it might be best to get some idea of what investors would pay for it, so that I can make an agreement with my grandmother to buy it at that price (so there is no chances of family members saying I low balled her). 

She has a low monthly mortgage note, she doesn't pay property taxes (or double digits low). I was suggested to keep the suggested that I should make an arrangement to buy the house at the fair price, but keep it in her name, dont move the loan. And that I pay the monthly mortgage payment, rehab the unit (will use some home depot credit) and pay for the labor with myself doing a good amount of the work also. This would make reduce waiting for closing, getting another loan to purchase, save cost in property taxes and more. And later, whenever is best, purchase the property from her, at the price we agreed minus the amount that I paid monthly, and try to get the equity out of it with new value (ARV). I can also make some cash flow with the rental income after rehab and give her a bit more cash flow also since I would be saving with property taxes and interest saved.

I dont have a lot of funds to actually purchase the property right now, working on a heloc loan but that takes a lot of time and has a chance of not going through. I do have room on Home Depot card to purchase all the materials, I can pay for the labor while doing a lot of it myself. I've done the BRRR calculations and the property makes sense. I just have to be careful to not let my emotional attachment to this property to go to far with the rehab (expensive materials, costly upgrades, etc), this would be the ultimately challenge for that.

What are the pros and cons from your professional/experienced position about this situation (keeping it in her name for now) and would which direction would you recommend?

Thanks