First Deal - Wanting to get feedback on the details

[Christopher Almaraz]

Hello,

I am new to REI but have been lingering and learning for sometime in the shadows. An opportunity has come up, that appears to check most boxes for me. Basically it is my next door neighbor's property that is in a trust. He and his siblings are looking to sell. Property needs foundation repair, the floor has a large crack that has been looked at by several contractors and a civil engineer. Engineer reports the structure is sound and the floor is not risking the property's integrity for habitability. I have foundation repair specialists scheduled to give their 2₵ in the next couple weeks as well. Other than that, roof is newer, and there will be some drywall, new flooring throughout, appliances and a few other items. Foundation is the biggie.

Numbers : Zillow estimates at $340k. Seller is looking to get $210 and prefers a cash deal to minimize expenses, which I do too. My goal is to actually live in the property and house hack 2 rooms while continuing to homeschool my children (ex and I are no longer together so living next door would be a very ideal scenario while raising the kids) once the repairs are done. 

My Mother is interested in helping me get into this deal and she has the funds to do so, but we are navigating everything delicately as neither of us have invested before. I am aiming to overfund the initial purchase if I can to cover property, repairs, assumed mortgage cost for months of no income (assuming 6 months max), and any variance. Then when it is complete, have property appraised and refinanced to pay back the hard loan from my Mother or other lender and because I overfunded, receive cashback at closing and either pay back into the new loan or wait for another deal once I get renter in on this place with me.

My hiccups will be my income to qualify for the new loan, and the fact that I have an existing mortgage which affects my DTI right out the gate. It is a possibility that my Mother would at this stage gift me the down payment to take on a second primary residence loan but we are still discussing. I know there are loans that consider rental income in order to qualify (credit is good). Any experience or pro/con with these?

Base don what I am saying, what are you all seeing as good/bad for this deal? Any possible strategy I have not yet considered? I am really wanting to make this happen but my income being so low I am worried too. 

Thank you for any ideas or perspectives moving forward.