Long time reader, first time poster - I am inheriting 60% of a deceased relative's property which is worth about $300,000 - $310,000, fully paid off. After costs have been paid out to the other beneficiaries, I should receive about $170,000. Due to past mistakes, we do not own a PPOR and are renting but would like to buy a home now. With other savings and shares, we can access another $150K or so, which would give us a reasonable deposit. We were going to sell this inherited hpme, but I'm now thinking of paying out the other beneficiary, and keeping the property as an IP. Therefore, I would be paying out $120K after costs. My question is - would I be able to borrow 80% of the value of this house, giving me say, $240,000? I would have paid out the $120K but could now have access to $240K AND have an IP, (without paying stamp duty) which would probably be slightly cashflow negative for a couple of years. We would also save by not having to pay agents' fees to sell the property, and any improvements I make would be after buying out the other beneficiary, therefore benefiting me only. In other words, I'm just wondering whether having an IP would impede our borrowing capacity to buy a home.