First Timer How to Finance with no cash up front

[Chad Summy]

I'm looking to understand financing options when having no cash in hand. So let me explain a bit.  My house was purchased/Reno'd with a family members money (150K total), in which I am paying back but its at 0% interest. i still owe $119K. I just had an assessment done that came in at 190k-220k. So my question is do I take out an actual mortgage on my home for 80% (its feels odd since I would have essentially 2 loans on one property)? then use that to purchase a rental property?  what are some negatives to this? Is there i better route?