large single family with separate 3br 1ba apartment for newbie

[Bennett Pinkley]

Hi BiggerPockets,

brand new to real estate, recently discovered this site. Lost my job and it's put things in a different light, such as why am I taking financial advice from people around me who are struggling to pay their own bills?

I've found a property close to my old job that I'm going to return to, saving me a 30 minute commute time. also because I previously quit my job that I'm returning to, I have a nice savings that I withdrew from my retirement (7k).

It's a 7 bedroom, 2.5 bath, with additional separated 3 bed, 1 bath aparment behind, all sitting on 12k lot with 3500sq ft living space between them. as far as I know it's been built in 1950, but I'm unclear right now what has been updated and permitted correctly. (there's a diy bridge connecting the house to the apartment which will most likely be removed.

Within the small neighborhood, only a few streets away have been nearly 20 homes sold in the last 6 months, and only two sold under 200k, most 220+, all of them single story, most 3 bed 2 bath, several are new construction.

my short term goal is to own and rent the apartment and live in the main house for the rent to cover expenses, no positive cashflow necessary, but appreciated.

the house is in need of extensive repair, it's on block foundation, but not in a flood plain and did not flood in hurricane harvey, (I'm in houston). obvious potentials due to original construction being in 1950 is asbestos, rewiring entire house/upgrade, redoing all plumbing, replacing most windows, hopefully not a complete install, and it has no central hvac. I'm considering going with ductless, potentially to save money I can deal with window units in main house and put nice ductless in the apartment. 

Ask price is 85k, been on the market for 345 days, started at 85k, they raised price then lowered again. If I can expect an ARV of at least 220k due to most similar comps being half total sq ft and same lot size, if I can get the property for 75k, or even 85, and get HML for 140k total, (try for 150k) put 70k into it and refi for the total 150k I've put into it after I have a tenant in place (150k house is not out of my price range of house to actually buy with my income, but I don't have a down payment or savings really) I'd have at least 70k in equity for potential HELOC for future investments or if something were to break, but almost everything would be brand new.

I'm wondering if there's anything I've forgotten or anything I should think about or general advice. I'm still doing my research on investing and won't make a move until I actually have that job back. I'm not going to jump in haphazardly, and want a solid plan.