Would like some advice with my first real estate investment

[Shane Row]

Hello, I am a first time homebuyer looking to finance with either a 203k loan or standard FHA loan I have pretty decent credit but not enough cash down payment for conventional loan which is why I'm going the FHA route..my goal after I receive my preapproval is to buy a foreclosed fixer upper in the price range of 60k-80k(either duplex or single family) and use the 203k to add value i.e add rooms upgrade kitchen etc then after a year of primary residency (required for FHA loans) I plan to rent out the other half (if duplex style) and hopefully create some kind of positive cash flow after expenses etc. I understand it's alot more to the process as I have done a ton of research but if I can receive any feedback it would be greatly appreciated.

[Nancy L.]

Sounds like a good plan! If you're looking at duplexes, I'd make sure it would be profitable if it were fully rented out. When you go to sell someday, you'll want the numbers to work for an investor since most people looking just for a home don't buy duplexes. Try computing cap rate. That will give you an idea of what it's worth as an investment property.