So I'm trying to evaluate the best method to do this..

Must be cash-flow positive, so I would need to bring in one hell of a downpayment unless interest rates decrease.2.

Hope this helps and best of luck! 

Probably best to speak off-line if you want, so I can get context and see which direction you should probably go.

If you have insights on the best areas to look, common renovation challenges, or anything else I should be aware of, I’d really appreciate your advice!

Best of luck on your first flip!

I would never buy commercial at such a cap rate unless I was doing a 1031. 

The main thing is making sure your investments produce a return that outweighs the cost of the borrowed money.A full cash-out refinance could work down the line, but with rates where they are, you’d be trading a 6.25% ARM for something likely higher, now that it is not an owner-occupied property, which may not be worth it unless you really need the capital to scale.

@David Avetisyan If you sell your home for $510K and provide a $10K seller credit, your taxable gain is based on the net sale price of $500K ($510K - $10K credit), as seller credits reduce the gross selling price for tax purposes.Tax Impact in CaliforniaCapital Gains Calculation: Your gain is the net sale price minus your adjusted cost basis (purchase price + closing costs + capital improvements).Primary Residence Exclusion: If you’ve lived in and owned the home for at least 2 of the last 5 years, you may exclude up to $250K (single) or $500K (married) under IRC Section 121.California Tax: Capital gains are taxed as ordinary income at rates up to 13.3%.The $10K seller credit lowers your taxable gain.

Be willing to hold them to these standards.One of the best things I ever read in these forums was to be firm, but fair.