Looking for a Gift of Equity Expert

[Joshua Duvall]

Hey everyone. I have the opportunity to buy my family home in the next few months, and would like advice on how a gift of equity works. I have done some research on the topic, so I do know the qualifications and will meet them when I apply for it. The house is in SoCal in the San Fernando Valley (SFV), specifically Granada Hills and my parents are looking to love up to Santa Clarita, if that helps those who are familiar with the areas. 

Current condition of house is pretty rough, so I've talked with my parents about fixing up the house before we have it appraised. My goal is have the house valued at approx 650k (that's Southern California numbers for you) and utilize 150k as a gift of equity, essentially giving my parents 500k to put as a down payment for the house they find in Santa Clarita. The 150k would cover the 20% down payment I need to purchase my family home. 

My questions about this: am I going about this the correct way? Do my numbers make sense? What are the major cons to using the gift of equity? Is a gift of equity still going to be possible once the COVID-19 dust settles?

Any help would be immensely appreciated. I just want to know if my plan is solid or if I need to pivot it. Thank you.