Creative Financing for a Family Deal

[James Letchford]

I was approached by my grandfather about purchasing his property in Southern NJ. He owes $75k on a HELOC (3.25% that matures in 2022) and is ~$5k behind on taxes. He's getting older and just wants out from under it all. He really doesn't have the money to keep up with the home payments and live the life he wants.

He's agreed that the property is mine if I assume the liabilities on the property and allow him to continue to live there indefinitely. From a cash flow standpoint, I'll be able to rent out an already sectored off apartment to cover the overhead while I improve the other parts.

Because I'm essentially 'purchasing' this property for ~40% ARV, I'm going to move on this. Not only would this be a great acquisition, it helps out my GF, so it's a no-brainer to me.

I'm reaching out on BP because I'd love to hear some recommendations from the super-professionals on how to structure the money. 

• Is this something you would SUBJECT TO with the HELOC already in place?
• Would you recommend that I just get added to the HELOC and get the Grant Deed in my name?
• Does it make sense to do a full Homestyle / 203K Loan Purchase and wrap in all the home improvements into it?
• Any other creative ideas that make this smooth for him/I and limit my 'exposure' so I can easily do future deals?

Thanks in advance for any inputs provided.