First Future Rental Property Purchase Advice!

[Nicholas S Sally]

Hey Everyone! 

I am currently in the market to purchase my first property. I have been saving up for a 5% down payment with my price range being in the low $200,000s. I have been building some reserves as well and I am finally ready. The goals for my first-ever property are to do some minor-mid renovations and ultimately rent it out for years to come. 

However, my family did offer one of their rental properties to me through seller financing. The 2 bed/1 bath single family property has been rented out for the past 7 years with the rent being $900. The property is due for some renovations. I know my family will not charge me anything crazy to own the home, nothing compared to a mortgage payment for a property purchase in the low $200,000s. They will most likely let me take over without a 5% or even 3% down payment. 

I guess I could use some advice. I want to start building equity in an asset and also start building my rental portfolio (I am 25). I want to make sure I start this process on the right foot and have a strong foundation to build on. 

Do I take over my family's rental property through seller financing with the goals of renovating the property and then keeping it as a rental in my portfolio? Or do I go into the market and purchase an updated single-family home or even a Duplex all priced around the low $200,000s?