It sounds like you have done some cursory calculations, but you would be well advised to ignore what a "typical" project would entail, and get inside this unit, do a complete walk-through, put pencil to paper for worst-case scenario based on what you see, and if the numbers work at that point, then move forward.

Keep your head held high and use the ignore button frequently.

Its a regrettable mistake and sucks as a first foray into RE investing. its the mistake of a new investor who maybe was just motivated enough to ignore the red flags.

Originally posted by @Justin Fox:Hello Chris,I would take 20k and keep it on the side for fun, and use the rest to put down payments on a few rentals.Justin Justin,Again, I'm new to this so excuse my ignorance on the matter but is it fairly easy to do this?  

Only on house can be built on it.I have no experience with new construction, so excuse my ignorance.

Lastly, make sure you own the house before obtaining free bids or risk being ignored.

Please don't put ignorant post up when you don't know what your talking about and want to just bash people who do not do the same type of investing you do.

For those of you who are unfamiliar with the geography of the San Francisco Bay, there are three parts to the Bay, the North Bay, East Bay, and Peninsula (I’m ignoring South Bay b/c it’s too far away for this house).

Social aspects again.Property owners have social responsibilities, most slumlords ignore them, but those who recognize social responsibilities generally enjoy better appreciation of their property.

Some might overlook and some RE investment promoters tend to ignore this fact.