First time investor looking for advice.

[Leif Weisner]

So I have the opportunity to buy a family members house from them and gain some massive equity for free. We’re talking buying a $600k house for $250k. The reason being they have to much debt and would like to retire and vacation but plan on keeping the house in the family. They would travel most of the year and come back for a couple weekend every now and then. I had originally been saving up for a multi family home and was presented this deal. My main question is if I can buy this place what is a good strategy to get to my goal of buying multi family homes after I take a loan out on this place. I make roughly $80k a year and will be doing this all myself. My expenses are very low and will only be getting lower as all my debt is paid off. Thank you in advance for any advice.

[Brian G.]

@Leif Weisner dude that's amazing. If there is that much equity as you state, once you purchase the property you can access the equity via a cash-out refi or get a Heloc on it and use those funds to reinvest into the next property. In fact, I wonder if you could get a lender to do a cash out refi upon purchase @Chris Mason? In other words, they give you a loan for say $300K, they pay your family member the $250K and you keep the $50K to reinvest on a multi. For sure you could get a Heloc on it after you purchase it and use that to reinvest if your DTI ratio is healthy and you have good credit, etc. You never want to over leverage and always keep healthy reserves to weather the storm. Having said that, you can find a way to access that equity after/while acquiring the property. Seek out a competent mortgage broker who can walk you through the process and help educate you on your options.