Refinancing a house that is given to me...?

[Brendan M Brown]

I am soon to start my real estate investing career when I sepearare from the military next month.

My father mention to me that if I wanted he would sell me his home (that he owns free and clear) for much much lower than it’s worth.

Now I started to consider it, and came up on the thought of, "if I purchased it for much lower, could I then have it appraised and get a larger loan on the value?" Almost like a BRRRR strategy without the rehab part.

This sounds almost illegal and unethical, so I’m just curious as to the answer if there is one to this.

Let me know, thanks!

[Nathan Gesner]

There's nothing unethical about it. Talk to your lender and see what your options are. If you buy it low enough then there may be some equity available for you to pull out at closing. The bank will only give you up to 80% of the equity so you'd have to get it for a really good deal to make it worth your while.

Personally, I would accept your dad's gracious offer and ensure financial stability for a year or two before you try maximizing your debt.