18k Fannie Mae Duplex. LF input

[Darren M.]

I am in the process of starting a real estate business in Northeast Ohio. Currently I live in the southern part of that area so my first step is to move to Canton/Akron area. I'll be buying a duplex and renting out half. For those of you who don't know, this market has many great deals to be had under 50k. 

Well I've been searching and just got a listing for a bank owned fannie mae duplex in Canton for 17,900. It has a 2/1 unit and a 1/1 unit, I would live in the 1/1. I've driven by and from the outside its in much better condition than the price tag says (just my uneducated eye test). The area is iffy. It's not in the ghetto but its encroaching the border. I once lived a few streets over, towards the nice part, and never thought twice about it, altought I was only 20 and probably didn't know any better. But we never had any problems with neighbors. Although I would love to live in a great neighborhood, the 17.9k pricetag is almost too good to pass as i could rent out the other side for at least 400. My questions more lie with fannie mae. Its currently in the "first look stage" for owner occupiers. How long would i have to live there if I bought as an occupier? Do i have to stay for the whole year? Are there any caveats that don't border unethical? Also, while in these early stages, does anybody know how much of a discount they will take? Or if I try a lowbal cash offer, will they just wait and open it up to investors? Has anybody ever done the online offer through them? I'm going to look it over with my realtor tomorrow and will post back, but any input is much appreciated!

[Sarah Miller]

@Darren M.

I know exactly which property you are referring to.  I was also looking at it when it came on the market although I wouldn't be living there.  I would be extremely hesitant if I were you since you are looking to live there.  You say you used to live a few streets down and it was fine, but Canton is very odd in that usually that's all it takes to get in a very bad area of town.  Canton is extremely spotty with good/bad areas and where this property is located, I definitely would NOT be living there.  As just an investment property, its perfect.  I would wait for the owner occupancy condition to be lifted OR reach out to the listing agent to see if they would humor an investor offer.  We did and are about to close on one just like that.