Assuming Grandfathers mortgage

[Peter Deising]

Hello everyone,

My Grandfather owns a duplex living in one half.  The house is in great shape as he refinanced 10 years ago and redid everything from new siding, roof, pretty much whole house make over.

The home is worth around 300k and he owes 105k on it.  I am his only grandchild and he has the house going to me in his will.

This is his only asset and as he gets older and the inevitable happens I want to make this as smooth as a transition as possible without the whole probate thing.  I already met with an elder law attorney but I don't think setting up a irrevocable trust is the right answer considering it being his only asset.  I am concerned that if something happens to him and he needs care or a nursing home with the lookback period.

The loan is not assumable but I read that there are ways to assume a loan anyway.  (this would be ideal considering his low interest rate)

This would be strictly an investment property for me and I would obviously let him live in the home for the remainder of his life. His tenant would cover the mortgage

This would be a great deal for me considering I would be getting a 300,000 plus dollar home for $105,000

Can someone guide me in the right direction as the best way to go about making this purchase?

Do I 

     a) just take out a loan (at a higher interest rate)  I can put 25% + down no problem

     b) Use a HELOC from my home to purchase it.

     c)  From what I understand i cannot be just added to the deed incase something happens to him and he needs expensive care or nursing home?

Thanks in advance -Peter