FHA 203k or Conventional or cash buy it. we were hoping to get the house for 100,000 and rehab some of the house for 50k. but we are running into worries about covering the cost of the septic and well.. and weather or not to BRRRR it or sell it off. my guess is the property could sell for between 260,000-300,000 tops.needs new kitchen gut, 1 bathroom gut, new plumbing throughout, and heating system and new windows and electrical upgrade.whats the best way to go about thisIf you want to use a 203k, you're going to need to occupy the property, for at least a year.

If your nephew doesn't have the money and you need to get involved to help with payments, then you are going to need to talk to the owner with your nephew.If the two of your went into it as partners, how much could you and he come up with for a down payment and for the bank to lend you?

Details of the property: Property consists of a 29 unit storage unit made of cinder block and metal roofing and two single wide trailers.

On the north side where I work, I am much more concerned about loan limits and the self sufficiency test (only for 3-4 units)  I think in all my years working exclusively with 2-4 units only once was something triggered by the FHA inspection, and it was a flat roof the seller sealed off access to decades ago and hadn't been up there to even check on it in 20 years. 

Hard to say without seeing the property itself and knowing how old the roof, etc are, but you may want to consider allocating 10% to capex or maintenance/repairs instead of 5%.Hope this helps, best of luck and let me know how it goes if you do submit an offer!

I have a house with an ADU in the San Fernando Valley and I have a client who has three of them and is pretty happy with them.With the 2-4 units at $700,000 you are going to need to run your ideal numbers. 

It has new everything... plumbing, HVAC, metal roof, flooring, bathrooms, kitchens, paint, cedar beams, cedar shutters, vaulted ceilings, landscaping.... everything!

My capex budget includes but not limited too: roof 25 life span, floors 10 year life span, appliances and hot water heater 12 year life span, hvac 20 year life span, bath and kitchen remodel 20 year life span, etc.

I would be concerned with the roof, plumbing, and HVAC.

In the meantime, I'll start researching some architectural firms in the area - should I happen to need one ...