creatively convert family loan to increase investment

[Patrick Fitzgerald]

I have a family loan on a single family home; owe 90k, home is worth 110k. I would like to be able to pull a chunk of money as a downpayment to begin investing in multi-family. My basic plan is to sell the home, and ask to have the 90k loaned again as the downpayment on an owner financed multi-family property. I also would like to form an LLC at that time for the multi-family property as the current property is simply in my name. So a few questions here: Is this kosher in general? Are there tax implications to look at on my side or the family side? Is there any difficulty in the conversion of that loan into a proper business format? Is there a different and better way to do this? Thank you for any and all advice.