Need Financing Advice for Inherited House with HELOC

[Jarrett Londergan]

Hi all,

I recently graduated college, have a good job, and am extremely eager to start a career in rental real estate investing. In the next couple of months I will inherit a 1940's single family home worth ~$240k from my grandfather. He has paid off the entire mortgage but has an existing home equity line of credit (HELOC) on it worth $140k which he is to pay $700/month in interest. The original plan was for me to take out a loan for $160-190k to pay off the HELOC and pay for some repairs and upgrades; this would result in a monthly mortgage payment of ~$950/month. I was wondering if there was a way for me to take over his HELOC to have a lower monthly payment or if there were any other creative financing methods that someone could recommend for my situation. I will provide additional information if necessary!

Thanks in advance,

Jarrett