20k to Heloc a 180k, Think? 🤔

[Owen Mitchell]

Hi BP family I have an idea I wanted to try out would to get your feedback if I can to see if it’s a good one lol. My uncle has a house he owns out right, no mortgage. He bought it with his wife a few years ago it was in foreclosure for $55k and they did 10k renovations and the house is valued at $180k on Zillow but the tax accessed value says it’s 120k. They are getting a divorce and instead of selling that house and splitting the profits, which is want she originally wanted. She opted to do a quitclaim if he paid her a monthly allowance until it totaled 35k (some amount she felt he owed here) an compromise he seemed hard pressed to make just to keep her out of his life, so my mother came up with this plan for me to pay her 20k to get her name off the title and get my name on it so that I can be a co-owner on a house that’s all payed for so I can do Helocs to help fund my other deals. 

Now to add some more color to this picture the city is going to make the road wider I believe so they gave them $10k to move the septic tank almost a year ago, which didn’t happen because she skipped town with the money. I assume when there ready to do work on the road and they find out the septic tank is still there someone’s getting fined and I definitely don’t what that to be me.

So that’s 20k plus 8k - 10k to move the tank, and Zillow has the house valued at 180k but I want to have it appraised myself to be sure. Does this sound feasible? to use this house as a bank to help buy property or fund the rehabs for the Flips and BRRRRs I want to do. Here are few more questions I had on the matter:

1) If I’m able to get my name or my llc on the title is this house is this a good deal? 

2) Will a lender even do a Heloc on this property even if my name is on the property if I haven’t even done my 1st deal yet so I     have no cash-flow / income?

3) Would I need my uncles participation or for him to co-sign on any Helocs?

4) Let’s say they won’t do a Heloc until I have income that meet their requirements, do I still do the deal even if it takes 6 months to a year or more?

Please share thoughts and let me know if I’m overlooking something as well. 

Thx!😁