Advice request: I'm doing it all wrong (BRRRR)

[Kevin Lee]

Hey all, 

This is a complex situation but my mom is trying to purchase my unlces home  since it's a few miles from my home in a HCOL area.  She's purchasing it for below market value since it needs a lot of work.  The house is being bought for 680k (likely worth around 750k) and there is 250k left on the mortgage at 2.75% rate. Not a true real estate deal because no title change, only adding name to title and mortgage.

Her plan is to give her 400k, add her or my name to the title/deed and then add my name to the mortgage since it is not transferable. She wants to do this to take advantage of the low mortgage rate and extremely low monthly payment.

We plan to add new kitchen, floors, paint and windows. I know this is the worst method to use 450k and there is a better method. We appear to be doing the BRRRR method without any of the benefits.

Also, would it be advisable to add my name or my moms name to the title?  I was told that if it was in my moms name, the house would be an inheritance to me and there would be no tax implications.  Or could I put it in my name to avoid estate/probate issues in the future.

Thanks!