Pre- Foreclosure, first time home buyer- Found a great deal. HELP

[Silvana Vaca]

Hello everyone,

I hope I can get some clarification and some help regarding this matter. I found a home by chance. This house happens to have HUGE potential for flipping. The home tax value is 140k however the house is currently going under pre-foreclosure for 100k. According to the sellers Realtor this individual is going bankrupt so there little to no negotiation on this numbers. The area where this house is located is a great neighborhood, good schools, cape cop. Homes in the area going for 130k-160k. I am highly interested in this home, however, i would be a 1st time home buyer. The home is trashed in the inside. But it has great bones. At least for what we where able to see. 

When you are a 1st time home buyer can you purchase, flip and then sale? Or are you bounded to live there for a specific amount of time. I know would not be able to rent it. Although that is my goal at some point. I have mixed feelings about this because I am trying to get started with little money. I would have to get an FHA loan. Most private lenders i have found , want to work with individuals who have experience and or have a larger budget than i do at the moment. Should i just keep saving all i can and wait until I can give 20% down? If this home is to go on foreclosure I was told it would most likely be a no no for a first time home buyer. Help