looking to purchase another rental

[Richard Gove]

So my father is looking to sell his house, its in an upcoming area and there is little to no work to be done. He will sell it to to me below market value and I am hoping to get this done ASAP. I am currently own 1 rental property and have a good bit of equity in it after appraisal. I do not want to touch my bank account to use as a down payment since I could do a HELOC off my current rental. I am looking for advice on how to approach this!

[Erik Estrada]

Quote from @Richard Gove:

So my father is looking to sell his house, its in an upcoming area and there is little to no work to be done. He will sell it to to me below market value and I am hoping to get this done ASAP. I am currently own 1 rental property and have a good bit of equity in it after appraisal. I do not want to touch my bank account to use as a down payment since I could do a HELOC off my current rental. I am looking for advice on how to approach this!

 This will be very tough to finance with most lenders, but believe it or not there are a few lenders that will be comfortable with this scenario. 

You will need to demonstrate that this will be purchased as an investment property. 

The easiest way to structure this is to have the property leased out and be able to show 1st month rent and deposit. You will also need to be able to show you live somewhere else. 

Using the HELOC as a downpayment will not be an issue as long as it is tied to a property you own.