Took Over House/ How do I leverage it.

[Carlos Martinez]

Hello. Couldn't write much on the description but here is the situation but first a quick background. I own a 4-plex and I self manage so I have some experience. 

My family and I live in a house (El Paso, Texas) we are renting from my brother in law (2+ years) and today he told us he is willing to transfer the title to my name without me having to give him any money at all or paying him anything in return. He is going to live to Mexico and doesn't want anything to do with it. The current house value is around 95k (I'm being conservative). I haven't really put in any money into it because it isn't mine yet but I can easily get it up to market value 110k with simple upgrades. It us currently on a 15 year fixed mortgage and around 50k is still owed on it.  We want to keep it and rent it out.

My plan, if possible, is to get it under my name, get a home equity loan on a 30yr fixed mortgage and use that money to purchase our own home (down payment)  that we actually like or another rental property. 

My question is, can this be done?  Can I get a warranty deed even if money is still owed on it or how would I go about putting the title under my name?

Or are there other better options to go about taking advantage of this situation.

Thank You!