First Analysis of possible deal, turned into Possible live and Flip?

[Alec Saenz]

Hello BP!

Alright I have many questions about this potential deal! First I'll go through and just shoot the info and Analysis, this is my first analysis so I'm sure its rusty. 

This deal is for my Mother and would be her first Real Estate deal ever. Through the many months of me trying to motivate my mom to make a strong push to jump into REI she finally has jumped on it and I couldn't be more proud of her! My goal was to get into buy and hold and make my way up to commercial MF, etc etc, so when I would talk to her about REI she naturally was inclined to do the same. So one day she calls me about a deal she thinks she might have found.

3/2 walk in closet, tile and carpet, screened porch, 1992

1207 sq ft Bank owned asking 128,200 

Comps in the exact same neighborhood with same layout going for 169 -171

rent is going for around 1300 in the area. 

She doesn't mind living in it for at least a year before she sells because she wants to 

do some reno work. (wood floors, cabinets, appliances, paint, crown molding,)

she's on a month to month rent basis right now and this would be a first time home buy due to haven't purchasing a home in so long.

She has up to 6K downpayment if needed.

The thing is I have so many questions about this deal and I'm hoping if i can get some clarifications please!

Okay,  in terms of financing.. 0 down first time home buyer, can you do this with a Bank owned? 

can you do a FHA 3.5?

Can she do a 3.5 with a 203K with added reno costs with a bank owned? 

Doing some estimated numbers, adjusting with all three of those above and an average interest rate, at 30 years, it still doesn't cashflow much, HOA fees are at 880 quarterly. so its looking like a more of a flip kind of deal.

the listing was posted just a few days ago and when visiting the property with the REA she noticed what she thought was an investor taking photos. The only way I see she has an advantage over an investor Is if she decides to live in the property, she will get 30 days advance time to make an offer, but she doesn't want to move in until getting it renovated. Thats where I brought up the 203K to her. She can use 4.5K of her DP, keep the rest, reno the place, live in it for a year, then sell it, hoping it appreciates a little more, for around 170K?

any insight is much appreciated!!! Thanks for taking the time to read my post!