Need honest brutal opinion !!!!

[Josiane Calderone]

Hello BP I live in the Los Angeles area ( West Covina ) and want to get my foot in the door with real estate. Properties where I live for a 3-1 SFH are valued at about $550k. I found a property that needs tons of work and I am currently negotiating at mid $350k but I feel like the most I'd pay is $400k am I cutting my profits by coming up that high ? They're asking price is $500k. I was thinking of buying the home and living in it while fixing it over the years. Then I would probably pulling the equity and reinvest it, or should I pursue a duplex or triplex. I just don't know where to start.