Deal Analysis Feedback

[Elrick Lounds]

Hello - Was working on a deal this week that fell through and was hoping to get feedback on my approach, and my backing out of the deal.

The home was a 2/1 single family home that was listed at $59,500 plus a lot next door with a dwelling that wasn't livable next door for $30k.  Comps in the area around $90k for the lot with the property and about $25k for lots.  

The deal I had under contract was:

70k for both properties, Seller Financing, 30 year Note, 5 Year Balloon Payment, 6% interest, 15k down.

I had the home inspected, and also had a contractor come to give a quote on repairs to get the property into a rentable state.  The repairs were about $20k.  

With the out of pocket for repairs exceeding my cash and down payment I looked to credit for the repairs which would put me around $400 dollars a month.

Rents in that area comp around $850-900,

-$366 for the mortgage

-$400 for the repair note

-$100-200 Additional Expenses

Ultimately with these numbers I decided to back out.  

Any insight on different approaches or avenues I might have missed would be helpful.  Or maybe my analysis was correct and it actually wasn't a good deal for me.

Look forward to hearing back from the community.

EL