Uncertainty about how to spend on the lower unit's remodel given my area: I'm struggling to put cheaper things in as I may resell. 

For 2009 we plan to purchase bank-owned homes using private and institutional funds to renovate and resell.

I’m interested in buying and renting out multifamily homes as well as renovating and reselling properties (specifically foreclosures.)

That said, you might do your due diligence on his property, and if it's a good enough deal, find hard money to buy it and then resell it.The first thing to find out is why he's in such a hurry to sell.When you decide to resell it, use a good, strong real estate agent.  

I will say this though, usually we deal with loans that are in the 5-6% range, so it's not advisable for the bank to call it due, so they can take on all the risks/costs associated with taking a property back, just so they can resell it at 3%.

Does it become a mess trying to resell after flipping?

You buy 1,525,000 and resell for 1,650,000.  

They were asking 350k We thought we could resell for 470k or so. 

I would like to know if I could buy I home with 20% down do minor fixes and reselling it could I do that or will I need to take out a loan and pay that in full in order to sell it?

After that we're going to decide whether or not to purchase and then immediately resell or build a house.