My wife/partner and i have been living in our current residence for roughly 3 years (renting) . About a year or so ago we decided to try our hand in real estate investing, so we buckled down got away from the T.V. and all other distractions in our life and began to study real estate investing , we had initially decided(after a time of research) to choose wholesaling as our starting point because of our financial situation, and the level of risk involved. During our time of study, research, and talking to other local investors we decided to look into making our first investment in our current residence, we went to see our landlord(who is a real estate attorney) and asked him if he would be willing to sell, he agreed and gave us a sell price of $60,000, at this point we wanted to make sure we were getting a good deal so we began to run our comparables and find out what the house was appraised at , come to find out the appraised value of the home is only $38,000 in its as is condition but according to the comparable analysis the potential ARV of the property is somewhere between $80-$90,000 at least. We decided to meet with him again to re- negotiate the sell price and he did come down on the sell price from $60,000 to $45,000 he also offered to do seller financing. Well after weighing our financing options we came to the conclusion that it may be better for us to go with an FHA 203K since the rate is only 3.5%. OUR CURRENT RESIDENCE: 4 bedroom, 3 full bath 2,800sqft, two family occupancy. Our strategy is to live in the home for a year while keeping the lower half of the home rented out ,allowing the equity to build and giving us time to upgrade and improve the property before moving out and leasing the entire property or selling. Well, as it is well known that experience is the best teacher and since we lack experience, we figured our next best option was to reach out to the BiggerPockets community and trade dialog with other investors to help us minimize our mistakes and increase our chances of success in our first real estate deal. We look forward to hearing what the community has to say and appreciate any advice, comments or questions. Thanks.

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