The best way to start our part time house flipping business?

[Zack Ross]

Hi,

I live in the East Bay Area in northern California and my wife and I are planning on starting a part time house flipping business in our area. I am welder of our utility company and I make decent money and our debt to income is low.  Housing here is expensive but not as bad as west of us. My wife is planning getting her realtor license and we plan on selling our current home and using the $200K of equity and rolling some in a  smaller home with more property for us and taking the rest to start our flipping business. My wife is the designer and I'm the builder. We are in such the beginning stages its not even funny but we have big dreams and big hopes. We just want to build a solid foundation for this business and do this right before we do anything. 

So I guess my question is are we even in the right ball park? We can rent our current place out and make $500 a month on it but then we would need go FHA on a new house for us because average %20 down payment for conventional around here would be about 80k and that we don't have. I would love to hear your thoughts and creative ideas so please point us in the right direction for us just starting out. Thanks BiggerPockets team.