Creative ways to partner with my parents using their HELOC

[Will Kilby]

Hi all, it's been a while since I joined but I'm officially an investor - I've been in a house hack for about 6 months now! 

I'm looking to get another deal moving and have been thinking about finding a home to flip and my parents have offered to provide funds for a downpayment and rehab potentially using their HELOC (technically the line of credit is on a piece of land). I'm really struggling with how to structure a deal like this - I live two hours away from them, so I'm trying to find a deal I could totally manage and they just basically be silent partners. I know "gifts" that large are taxed...should we form a partnership/LLC and they just provide the funds from their HELOC and I manage the whole thing?

My parents are seasoned investors and very well off financially so they are well are of the risk and are fully prepared to help me out. Of course I want to minimize risk to both parties as much as possible, so I'd really appreciate any tips and advice. Another note - I'm open to the BRRRR method as well, but I thought a quick(ish) flip would be a good way to get some experience and cash under my belt, then move forward with more properties using my own means. Thanks!