Hello, I am a first time homebuyer looking to finance with either a 203k loan or standard FHA loan I have pretty decent credit but not enough cash down payment for conventional loan which is why I'm going the FHA route..my goal after I receive my preapproval is to buy a foreclosed fixer upper in the price range of 60k-80k(either duplex or single family) and use the 203k to add value i.e add rooms upgrade kitchen etc then after a year of primary residency (required for FHA loans) I plan to rent out the other half (if duplex style) and hopefully create some kind of positive  cash flow after expenses etc.

Talk to your building department official, they can tell you the best route to take in your area.  

I know there are people who have had success going this route but this is the overwhelming minority I would imagine.

Its a long road.Based on your post, I'd recommend finding a regular job in the industry, something with a traditional salary or hourly compensation, and saving up.  

If you go that route, get a good carpet pad so that way you'll only be changing the carpet in the future.Pex not copper piping.

Does anyone have a referral for a tax accountant in the SF bay area who deals with rental properties on a regular basis.Thanks.Steve

DM might not be the best route at this point.

Sounds like this guy might be looking for cashflow in retirement so a 30 year note with regular payments might work for him.  

Thanks @Bob Collett Thanks @Hattie DizmondI chose to go down the solo route a long time ago because of some pretty bad experiences that ended up with friendships going very sour.

The downside of this second option is it might be hard to finance discounted properties with a regular mortgage.