Starting in Queens, New York

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I purchased my primary residence approximately 3 years ago in Freeport, NY and I am looking to purchase my father's property in Queens, New York. He currently owes $134k and the approximate value of the house is $500k. I read that my father would be able to give me a gift of equity to make up the difference and also account for the 20% down payment, thus avoiding pmi. The house is a multifamily and my father would continue to live in one unit and I would rent the unit upstairs. I wish to do it this way to save my liquid capital and focus on the next project.

Before I pull the trigger, I am certain there is a wealth of knowledge on here that I could benefit from.

Just a quick update...

I originally tried to go the gift of equity route, but I was told that there are many other conditions that go along with it. For instance, I couldn't purchase the house and still have my father live in it. 

So I'm following @Ken Quagliata suggested and going in for a refi. I had hoped to be able to avoid paying closing costs, but for the equity available in the house, it's more than worth it.