How much to offer, is this the best plan to be able to flip?

[Brendon K.]

My problem is that I have very little equity. As I'm just starting out, I have around 9k in an old retirement fund and around 20k saved. I live in Austin so this doesn't really get you very far; I'm only able to get an FHA loan. In Austin, properties here are being pulled up to 300k and beyond if they're not there already. I REALLY want to be able to start flipping as soon as I'm able to but as of now I have to live wherever I purchase and the only flippable houses in my grasp are ********s in two categories: death traps or cat piss hole in the grounds.

So I'm trying to figure out the fastest way to get a substantial amount of liquid assets to be able to pay for a place with cash. I've found a duplex that's near a pretty desirable area (called "the domain", a big posh outdoor shopping area). Problem is, this place has pretty bad rot on the exterior wood siding. There's a 1x1 area that's completely exposed and you can see the foam inside the house wall. They're starting at 255 and the second side has 1200/mo coming in. Properties in the area max out at 275 right now but are increasing. At that 255 price it wouldn't be bad, but my REA says a full exterior wood siding replacement would run 25k+, which I definitely do not have. I could try to do it myself but I'm afraid I might get over my head as I'd be looking up youtube videos and trying it as I go. 

If I've calculated everything out properly, with 1200/mo coming in I'd only be spending around 800 for the rest of the expenses and living less expensively, which would be nice. I guess I could just keep saving the income from my job as much as possible in the meantime, then refinance the FHA in a year to make it a normal mortgage and apply for a new one once I get 20%. Perhaps I would invest in some of the more rural areas of Texas that have way less expensive housing while still living in Austin.

The REA that's actually selling the property said they already had an offer and that they're collecting all bids tomorrow and taking the best on Wednesday, so no chance to really get into a bid war. It's a lot to think about. 

Two big questions:

• How's my thought process for this? Is this the fastest way to get liquid assets to get to the second step where I'm actually flipping?
• Roast the property! How much should I actually offer for it? http://www.realtor.com/realestateandhomes-detail/1...