Dear BiggerPockets Community,

I'm looking for some guidance on how to structure a deal that allows me to take over my father's 4-unit property in Baltimore while setting up my first BRRRR project. I want to ensure it's a win-win for both of us.

The property is a mixed-use multi-family (3 residential units, 1 commercial), with an estimated current value of around $360,000. My father currently owes approximately $175,000 on the building and has about $95,000 in equity. We're estimating that $50,000–$65,000 in renovations could bring the ARV to somewhere between $450,000 and $480,000.

My goal is to buy him out and refinance after the rehab, using the BRRRR method to start building my own portfolio. My father plans to use the equity to purchase another multi-family property to live in, and would like to defer capital gains taxes (estimated at around $85,000).

I’d really appreciate any advice or mentorship on:

• How best to structure the transfer or sale
• Financing options for the purchase and renovation
• Tax-efficient strategies for my father
• Pitfalls I should watch out for as a first-time investor

I’m eager to learn and do this the right way. Any insight or shared experiences would mean a lot.

Thank you in advance for your time and support.