Help with first deal

[Dustin Lee Cotliar]

Hello smart investors of BP! Long time listener/reader, first time poster. 

My spouse and I are buying my parents house to help them out (long story but needs to happen). The house will likely appraise for 170-180K. Will need around 30K worth of repairs and upgrades. Plan is to buy from them and then have them live in the house for the rest of their lives and pay us a VERY discounted rent and we could cover repairs etc. It seems as though they would be willing to sell us the house for 130K. They owe about 90K on the mortgage, and would get a nice chunk of funds from the sale. I was thinking of getting a 'construction loan' to cover the purchase and construction; from what I understand its unlikely that I will need to put anything down because of the discounted purchase price. Then once complete, use a HELOC loan to pull out the equity and invest it into another property. Will likely try and get a 30yr loan, say 5% interest. We have perfect credit and have never purchased a house before/taken out a mortgage loan. I want to then pull out the equity and buy a duplex or something similar and eventually want to either get into multifam or commercial. This is near Baton Rouge, LA

*If you had to be in this scenario, is this the strategy you would use? Anything you would do instead?

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