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The home is totally damaged from fire, where it would need extensive repairs, likely a rebuild.

@Carter McGillTo begin investing in real estate, you must educate yourself, decide on your investment strategy, evaluate your financial status, study the area market, connect with other local investors, find investment opportunities, secure financing preapproval, carry out extensive due diligence, submit an offer, and move forward.Learn about real estate investment by reading books, listening to podcasts, using the internet, and connecting with knowledgeable investors.

If the rehab isn't that extensive meaning you can live in the triplex you can also try financing as conventional if you qualify as you would only need 5% down.

[emphasis mine][snip stuff about tax extension dates]Any borrower breaching such covenants will receive a three percent (3%) increase on every commercial loan you have with the bank for each covenent (personal financial statement/rent rolls and personal/business tax returns).

Remain disciplined and patient, taking your time to choose the correct offers, carrying out extensive research, and refraining from hurriedly making investments out of desperation.

I deal extensively with creative financing such as sub2's, land contracts, contract-for-deeds, assumptions, land trusts, etc.

@Russell Brazil,I understand your point about DTI, but I was thinking more about the fact that we would exhaust a significant part of our savings to buy the multi-unit first and would likely have to save extensively for a couple of years in addition to what we might cash flow from the multi-unit to have enough to buy our single-family home next.

You're talking needing plans, architect drawings, engineering study, a zillion permits and inspections.I just don't see a lender lending on this kind of deal without that person having major experience that includes some ground up or extensive rehab work.If you wanna "break in" to the financing world, it is not impossible at all. 

The pipe bursting caused extensive water damage to the second and first floors and about 4 inches of flooding in the basement.