Got a House as a Gift and Now Starting On...

[Jieun KimCaywood]

Hello, I am a beginner at BiggerPockets. I have been studying for the past six months by reading books and listening to podcasts, and exploring the site's flow and insights. 

I am very impressed by the outstanding and discerning real estate investment professionals here, like you. 

I believe your thoughts and brief comments will be better than my 100% effort. 

Let me share my story.

As the title suggests, I received a house as a gift from my father-in-law upon getting married. It is a ranch-style single-family home with three bedrooms and one bathroom, consisting of a first floor and a basement. It is 2,016 square feet, and of course, there is no mortgage on the house. We have lived in this house for two years, and we are planning to start BRRRR investing with this house.

Based on last year's tax report, the house is valued at $199,000. We plan to take a loan against this house (home equity loan or refinance) for 75% of its value, hopefully. The house we are moving to costs $400,000, and we plan to use part of the loan amount for the down payment on this new house.

[Status]

- Our current home is owned free and clear with no mortgage on it (Est value 199K).

- We will keep our current home as an investment property.

- We will get a new home as our primary residence (Approx  400K).

- We will be taking a loan against the current home to cover the down payment for the new home.

- Additionally, we will use the loan to remodel our current home and rent out. 

Does this overall strategy sound like a good idea?

I would love to hear your thoughts, even brief comments.

Even short comments from professionals seem like much better alternatives than my deep contemplation.

[Additional Question]

1. Is it possible to get two loans at the same time (each loan against each property)?

2. Is first question's answer is "YES", What kind of loan do professionals recommend for each property?