Looking to purchase my first investment

[Brett Blackmore]

Hey all!

First post since joining and do I feel like a rookie.  So just wanted to outline the facts of a potential multi-family home I'm considering purchasing.

My wife's aunt needs to put her house up for sale as her health has declined.  House is in a great area of a city nearby to a hospital and lawyer community.  Also, we have a commuter rail coming to the city in the next 2-5 years, that will connect it to a major city.

House has not been formally appraised, but a real estate agent they knew said in good condition, it could go for about 320,000, however in the current condition, they would likely be asking for 240,000.  It needs a roof, electrical and other improvements.  It's a 3 unit building, two 1 BR (One is the main house with a study and full size feel), and a 2 BR apartment. Rent for the area goes for about 1200-2000/mo.

I have a maximum out of pocket of 50k from my home equity, which would leave no room for repairs. She also has an 80k home equity loan on the home, so it gunks up seller financing a little. The rehab could cost 30-50k alone, but the ROI I feel is really worth it long term with the changes to the market in the next few years.

Ultimately, I'm just looking for my best options on how to move forward, if I should go into it with a partner, or if it's just too much risk and unknowns to get into it for my first property.

Any advice is appreciated!

Thanks

-B