Buying first investment property

[Adrienne Bryson]

Hello BP! I'm hoping to pick you guys' brains. This would be my first real foray into both renting and flipping.

Background: Husband and I currently have a home. I'm working with a seller right now that I originally planned to wholesale but am now thinking of keeping for myself via seller financing.

The plan: Seller's house has an ARV around $190k. Agreed to sell for $90k. I think needs about $35k in rehab. It's well-maintained but just hasn't been updated since the 70s. I am considering giving seller a decent amount (like $30k maybe?) at closing then doing monthly payments for 3 years with a balloon at the end. The plan is to do some of the bigger renovations immediately, then move into and do a live-in flip situation. Then once we move, to rent our current house. At the end of the 3 years sell one or both houses pay the balloon and move on to the next opportunity with a good chunk of capital.

Does this sound like a smart plan? What if the housing market shifts significantly towards the end of the 3 years and we aren't able to sell? The idea behind the live-in flip is to take advantage of the tax benefits (and to be able to turn our current house into an income producing property). But would it be more sensible to stay in our current house and just flip this other one quick?

Is there anything about this plan that seems crazy or not feasible?

Thanks in advance!