Help starting out

[Dan Baker]

I'm a first time home buyer and recently was attempting to purchase a home through a short sale (it fell through due to structural damage). I've kind of switched gears and decided I'd like to purchase a shell/fixer upper and remodel it. I enjoy construction/home remodeling and feel it would be a good learning experience. My goal would be to purchase the home, remodel, and then sell for hopefully a profit. However if I can't get the value I'm hoping for I'd would switch and use this as my primary residence and/or rent the home out. I'm looking to get an idea on what my options are, why type of financing/loan, and how to handle the costs of the renovations.

Here's my info
Property Location Baltimore, MD
Occupation - Engineer (hire date 06/08)
Salary - $65,000 yearly base.
Credit Score - 722
Debt - Approximately $4,000 in student loans
Cash in Hand - $21,000 (I'd like to keep as much cash as possible in hand)
Rent - $400 monthly, no lease
I also have a friend who is looking to partner with me so this is a possibility as well. He would add an additional salary of ~35k if I decided to go this route.

I would be looking to purchase a row home in the city. Shells/fixer uppers run for about 35 to 100K based on location/condition/deal.


Now I've talked with a lender and was told that I could not sell the home until one year after purchasing it (it kind of foils my primary goal). This would involve putting 20% down. Is this true? Is there anyway around this w/o having the cash to buy and remodel outright?

Also is the any other advice and/or financing loan options you could suggest to me?

Thanks,