Dual Transaction

[Sheldon B.]

My wife and I own an older home that need about $20K in repairs.  Based on the area we live in, our home has about $23K in equity.  Our home is currently too small for our family, so we would rather move into a larger home and convert the existing home to a rental property (this would be our first investment property). I've looked in our area and believe I've found a couple of potential properties that are in the $100K to $130K price range. The ARV of our current home would be $80K and rents in the area is about $750 - $900 per month.

Can this type of deal be done?  If so what do we need to be aware of? 

Also, how should we be presenting this when talk to lenders?

Thanks in advance for your advice...