Posted by Jimbob on October 13, 1998 at 11:40:45:
This is not a grand slam on the other hand it doesn’t sound like a bad deal either.
It all depends on the terms of the financing, I would offer $36,000 and do the repairs with my own money and labor in exchange for the down payment, have the seller finance the balance of the purchase price @ 8% over 30 years with monthly payments approximately $300 PITI. Assuming this house is not a bad rental area, and you can rent the house for $450, and the tenant you put in there will pay all utilities, you should clear around $150 per month, plus have somewhere around $10,000 equity.
I would probably do the deal on those terms and just look at it as another property acquired into your investment portfolio, find another and do it, and so on. It doesn’t take long before you have a nice portfolio of properties, then you can think about moving into larger properties.
My 2 cents…