First Timer: SFR BRRRR thoughts, feedback and comments

[Jeff Salberg]

Hey there! First time poster here looking to get some initial thoughts, feedback on a great deal that came our way. Details below. 

SFH in northern CA (2/1 ~ 850 sq ft on 1/2 acre lot). Currently rents for $1215. Purchase price of $210k, with $20k down. Seller-financing on remaining loan amount (5% interest-only payments for 5 years, no prepayment penalty but there is a due-on-sale clause). We're counting on our payment being roughly $1000.

Our tentative plan is BRRRR. Tenants will be out from anywhere between March 1 - July 1 (long story). As soon as they're out, we'll leave the place vacant for about a month and begin some needed rehab work (adding a mini-split, interior and exterior paint, kitchen counter tops and potentially a bathroom remodel). Once that's done, we'll move in and begin work on the massive backyard. We want to move in and live in the house for awhile because my wife wants a yard for our 1 year old to play in, hence why we're not just rehabbing and renting immediately. Our goal is (obviously) to do enough work on the property in 6 months - 1 year to increase our equity significantly enough to be able to pull a HELOC and leverage that into another house, and rent this one for ~$1500 (or whatever would cash flow at least $100).

Initial Questions

1. Open to thoughts/feedback on the above scenario. 

2. As a first time home buyer, what are some things to be thinking about now, particularly as we look down the line and see this as a rental, and explore REI viable long-term opportunity? What are some tools/systems I can begin putting in place now to make that process more simple?

3. Suggestions on books/resources to educate myself on the tax advantages and different scenarios of owning a home? Once this place becomes a rental, we'll work with a CPA who specifically works with CA real-estate - I have no interest whatsoever in trying to do it myself, and would way rather factor the cost of a CPA into my profitability equation. 

4. Thoughts on property managers once the house becomes a rental? I enjoy what I do, make good money, and have the impression that my time is better spent either a) working or b) being with my family as opposed to being a landlord. 

As the title implies, open to other thoughts/feedback or questions! 

Much appreciated, 

J