First time buyers- Wanting to buy dads home with rehab

[Heidi Erdmann]

Hello!
Long story short, my dad recently inherited his parents home after his mother passed. The home is completely paid off. He is interested in selling it to one of his kids for $80k-100k and I believe it was appraised somewhere in the mid 300k. Me and my husband would be interested in doing a rehab loan to fix up the home if we were to buy it. It is livable but quite dated and we would want to modernize/ make more energy efficient and maybe even add a small in law unit if he would like to stay in the home as well. I understand that would make over 200k gift equity which I believe would cover the down payment/closing costs? Would a Reno loan be doable in this situation? Or would we be better with the 80k mortgage and doing a separate renovation loan? Credit is in the very good level and we were approved for 275k back in February when we were originally looking at homes to buy. We are open to advice and suggestions :) Thank you all in advance!