Using gifted house to acquire another situation?

[Casey Martin]

Hey all,

I have been trying for a couple of months to figure this out on my own and would like some input please. This is the situation.

I am being gifted my mothers house which is paid off. I’d like to move her closer to me as the house is located in Wisconsin and I live in Minnesota. I’d like to do the following:

- Take the 220k paid for house and take out a mortgage of 150, getting a rental agreement for it also which would likely be about $1400 a month 

- Use 100k to pay down almost all of my current debt and reduce my DTI (besides mortgages)

- Use the 50k left over from the mortgage to put down 20-25k on a house close to me for my mother to live in (200k house or so) which I would then own and let her live in for nearly nothing until she passes (not in near future). 

Is this possible to do? Household income is about 200k and after the first step listed above we would have a 350k current mortgage (450k house) for our primary residence, 150k on the 2 rentals and a 60k student loan if this is at all possible. It appears the DTI should be okay from what I can tell but would any lender approve something like this? If so who do I start with? Any lenders I should try? It's hard to figure it out but I think it is worthwhile to try to end up with 2 properties if possible. I think doing it this way gets rid of a lot of possible tax issues too. Hopefully I've made it clear enough and I so greatly appreciate any help?