I strongly recommend that you join NARPM.org and then find a local chapter to join.

It's not uncommon to find strong older homes that have been remodeled in the past twenty or thirty years and have updated electrical, plumbing and windows.

In this seller's market, if there are multiple offers, a 203k loan will not be as strong as a conventional loan.  2.

It is a strong house with lots of potential, and good bones.

It is a strong house with lots of potential, and good bones.

@Patrick Thomas Dickinson the simple (and only) answer is to buy as many doors as possible in the most stable and growing market you can find...this would take on the form of a small multifamily property...probably in the 8-12 unit range within 20-minutes of a major metro city....you can find this in Columbus, Cleveland, Cincinnati, Kansas City, Raleigh-Durham, Nashville, Indianapolis, and other comparable cities...they key is finding the property...C-class value add with a strong property manager and you're off to the races...5-year hold with improvements made, operating expenses lowered, and income driven higher means your valuation will come back with enough equity to pull and repeat the process.

You and your friend's borrowing power is quite strong based on your combined incomes.

@Ashish DivayI don't think this is that strong of a deal to drop $90K into. 

It seems like the seasoning time before refinancing would be a pretty strong governor on the velocity of your money.

This makes your offer as strong as possible without putting yourself in a position to lose your earnest money.