First Deal - Need advice on Repairs

[Danica R.]

Hello!

I'm new to the bigger pockets community and also to investing and wanted to discuss my first deal on the forum. Specifically, where should I draw the line in terms of repairs for my first investment. The numbers are as follows:

Purchase Price: $202,500

3% Down (FHA Loan)

Current Assessment: $215K

ARV: $300,000

Each unit is a two bedroom/one bath and can easily rent for $900 in its current state. However, although they are two separate apartments, there's only one HVAC, the electricity and plumbing aren't split and the living rooms are really small (everything else is a nice size). So far, my options are to 1. completely gut it to reconfigure the living space so that both living rooms are larger and all utilities are split or 2. rent one unit as is and add the utilities to the rent (i.e. $900 + $200 for utilities) and then live in the other unit to reduce our housing expenses. (Our mortgage is $1390)

It's important to note that the house is older, built in 1925, so I may run into problems once I open up walls and I only have $30K to spend.

Apart from my options above, does anyone have any other suggestions?

Thanks in advance for reading my post and I'm looking forward to your suggestions.

Happy 4th of July!