What to do with about $200,000 in equity

[Jordan Buie]

So, I'm going to paint a scenario, and I want to see what the world of bigger pockets has to offer.

So lets say Bob has a property worth $270,000 in which he has $70,000 in equity. His elderly aunt has another property she is giving him worth $120,000 that is paid off, but she wants to continue living in the property until she dies, she also owns a property worth $45,000 in which about $18,000 is owed, but Bob believes because of the condition of his elderly aunt's shaky finances, he believes he can do a shortsale with the bank for $10,000. Let's also say Bob has about $15,000 in cash in the bank, and is cashing flowing about $400 on the property worth $270,000 that has just been purchased. Bob is looking at jumping deep into the world of real estate investing. What is the best possible option for Bob, what's the most he could do with his cash and equity? @Brandon Turner@Joshua Dorkin Also, how could he tap into the equity of the property his aunt is giving him, while mediating the risk of losing his aunt's residence?

[Tim Walker]

No matter what you are told on here consult an attorney (or two) about the implications of all of this.  Medicaid, other debtors, etc.

Also, the aunt's finances aren't that shaky if she has a $120,000 house she can give away, and your finances aren't that shaky if you just got that huge gift - pay the damned debt.