**first time poster**Making our second deal happen

[Bruce Wilhite]

Hi all,

First time poster here.  Excited to be a part of this community!  I've read some of Brandon's books, bought and sold three houses without an agent over the last few years, and set to close on my first rental property next week.  The property isn't expensive, but it has taken all of our extra cash, and I'm curious about how to make the next deal happen now that we have no cash reserve.  We have this property financed with a 30-year fixed conventional loan and put 20% down.  After repairs are complete, the home should appraise for roughly $100K and we paid $67K.  

I've found a FSBO listing for a SFH in our town that sits on a large lot. I've spent some time talking to the owner, who's ready to sell. I feel like a deal is there to be made, but curious about the best way to proceed. It appraises as is at just over $100K and I feel that I can get it for 80K. It also has a large lot that I'd ideally like to subdivide at some point and build another house on to rent as well. His house needs about $10K in repairs, but should rent for about $900/mo when finished. The additional acreage on the lot is worth about $15K.

Other context:  My father in law is also a potential source of financing.  He has about $200K tied up in two houses that are waiting to sell and there may be a possibility of partnering with him on this house as part of his 1031 exchange when they sell.  He's also offered to buy the house, subdivide and build the new one, have me manage the property, and then deed it to me upon his passing.  I'm not crazy about this idea because he's younger and it may not be my asset for 30 years or more.  I'm trying to find a way to either do this myself, or structure an agreement so that I give a partner a fair return on investment while gaining control of the property sooner rather than later.  I know this is a creative group and there's a ton that I don't know, so I'm hoping to learn something to apply to future transactions even if this deal doesn't work out.  

Thanks in advance!