Loan options, cant decide which route to go!

[Erika Torres]

My parents are looking to get rid of one of their homes and sell it to my husband and i for what they owe. Currently they owe a total of 25K and we are flipping it for 55K however, we have spoken to some banks and the minimum investment loan requirement in Illinois is 35k. Also the buyer had agreed to put the 25% downpayment on the 25K loan which would be around 5k.

Our options are:

1. Take out the 35k loan and pay capital gains tax (if any) and the difference for the downpayment.

2. Ask for the full 55k loan, pay capital gains tax and the downpayment difference but have additional money for a second investment home.

Any guidance is much appreciated!