For duplexes, I remember seeing a couple properties pop up last week around there in the $180k asking range with market rents that may get you to the 1% rule.

If your goal/strategy is to build a nice nest egg for retirement and not replace your current income (not knowing where you are in life), then netting 5% while padding your future isn't that bad of a deal, especially since there are ways you might be able to increase that 5% through property and operational improvements.

Spend the next year or two saving, improving your credit and learning everything about real estate, investing and financial management.

I recommend you search the 70% rule and read those explanations.

@Nathan, if I place different rules for unrelated tenants, will this be discrimination?

Have to put 30% down due to community rules, but still a small mortgage.View report*This link comes directly from our calculators, based on information input by the member who posted.

A flip is a business, so it is subject to ordinary income tax.The IRS does not care if you buy a house, improve it and resell it or you buy bread, mustard and lunch meat and make sandwiches - to them it is the exact same business model.You can search the vast number of writings I've done on this subject on Bigger Pockets.I agree with your CPA in all aspects and here is why.Running it through an LLC:  If this project comes in at a loss, how is your investor going to prove out their share of a loss or report it? 

Hello TomA lot of the rooms on craigslist that I've seen over the years have lots of restrictions and rules which can make it difficult to find a tenant for a room.

I know it can vary by market but are there any general guidelines, rules of thumb that people are using?

You can purchase one parcel with the home on it and apply for a home improvement loan to acquire the other later on.