Seeking Financial Advice on closing 2 Houses

[Joseph Adelmann]

Hello BiggerPockets forum!

How is everyone doing tonight? This is officially my first non-newby introduction post. I am looking for advice on how to make two deals work financially.

A little background, I am looking for a $50,000 multi unit house in Schuylkill County, PA with the intention of using a FHA loan to put 3.5% down in order to replace my current $525 monthly rent (no utilities) with positive cashflow. The plan would be to occupy one unit and rent out the other one(s). For the area I can rent two bedrooms units for $600 a month and one bedroom for $450 a month. I am confident I can find regular tenants by renting to the interns my company employs for six months at a time (they over lap their internships so there's always an intern at the facility). Currently I have debts, a good credit score, $4,000 in the bank, $1,900 in company stock, and around $55K in my 401K. At this point you might be thinking straight forward enough.

But there is an opportunity in a coworker looking to unload a decease relative's 2 BR house for $10,000. This is a really good price and I think this house could be rented for $600 per month to either an intern or a small family. It'll probably need another $2,000 in cosmetic updates to the interior.

So what is the best way to make both deals happen given that I don't have a lot of starting capital? Should my strategy be to work out a deal with my coworker like paying him $1,000 up front and $1,000 a month for the next 10 months (giving him a 10% gain on the amount he offered for giving me time to pay him the full amount) so that I can spend the approximately $3,000 left over to close on a multi-uniter? Will this leave me way too thin and in over my head as a first time home own? Did I divulge too much personal financial information on my first post? Am I beginning to ramble on and on? Anyways, I am looking for feedback from all of you awesome contributors. Regards,

Joe Adelmann