First investment property?

[John Princinsky]

I have a few questions and would love any input you could give. First a little about me and then I will explain the potential deal. I’ve been into casually reading about REI for more than 10 years. The closest I came to my own investment was renting out individual rooms from my home (back when I owned one) to be able to afford living there while my income had dropped. I learned a lot! Right now my primary business is not doing so hot and I am considering closing the doors in order to seek out a regular job - that way I can bank more money for my long term pursuits. This isn’t yet decided because I still may be able to turn things around. Nevertheless, I am tired of being on the wrong side of compound interest and recognize my need for change. REI has always been a part of my long term vision. Right now I don’t have much in personal cash or assets but found a real estate deal I am interested in considering. It is a Triplex in Michigan (where I live). Asking price is 75k, all 3 units are rented with a gross income of $1,235. It fits the 50% rule, but the max offer so far would be 61,500 based on the 2% rule. I am under the impression that it hasn’t been managed well because the seller has had it for 3 years and has not paid taxes on it since taking ownership. I am just now about to dig further into all of the expenses and details involved. Since I don’t have money for the down payment I am working out ideas for how to come up with the money. With my income being kind of low at the moment, I am understanding that it may be possible to include 75% of the gross income towards qualifying for a mortgage. I wonder if I can find a limited partner for the down payment cash or perhaps some kind of secondary financing, then refinance the property as soon as it is seasoned. If I can obtain the property below the value of comps, would it be likely to refinance it at an amount that would give me the cash to pay back what I borrowed for the down payment? What factors do I need to consider with a strategy like that? Are there other methods that might be viable? I don’t know just yet but I’m guessing the seller is expecting to sell the property conventionally. Any constructive advice would be appreciated!