House Hack - Duplex

[James Colgan]

Hey All, I’ve found an off market duplex in need of some repair (estimate unknown as I haven’t been inside yet). Both sides haven’t been touched since 1980’s and outside def needs some love. I plan on living in one side and renting the other side out. 

Home is potentially upside down on mortgage (verifying that) and current owner wants too much for the house. Asking $600k and worth about $500k. 

Question 1: I’m aware of Reno 203k loan and Fannie Mae home style construction loan. Any other loans I should look into? I’m not a first time home buyer but wife would qualify, I want to put down less than 10%. 

Question 2: if homes upside down on mortgage what are my options?

Would love other feedback/info. If missing info is needed, lmk. Thanks!