Owner financing (buying)

[Jonathan Robinson]

I am looking at a property, tax valued at 25,800.

The owner is selling it for 38,000. Owner financing with a interest rate of

3.5%. 2,500 down payment

Me and my business partner have ran the numbers and along with her promise to negotiate length of term and price a little bit, it seems that the property will cash flow well at the 38,000 mark at a 15 year rate.

The things I don't know.

Why would she get rid of the house? If she is owner financing, tells me its paid for, and has told that it is currently rented and has rented well in past, why would she rid of the property.

Why would she force the price so much higher that the tax value(market and assessed are similar to tax value)?

From running the numbers it looks like we will clear 600-650 on rent a month with only 250-300 overall costs per month at 38,000 mark. Its renting now for 550. We think so because of the local universities growth with no increase in on campus residency and her claim of renting higher in past. Plus market rents are set at 778 in the area for the three bedroom. The problem that brings ours down is Size and only one and half bath.

What would you do?

I appreciate any and all comments, the more I can learn about the situation the better.

Thanks

Jonathan Robinson