Evaluating a deal using Land Contract financing in Milwaukee area

[Zach Hicks]

Hello all. I have an interesting opportunity with a family member who owns a home in Cudahy, Wis. Tenant pays $800 per month for a one bedroom w/ office SFR. Family member has filed for Ch. 13 on the property and just wants out. She and I were talking about potentially listing it, but I worry about a market that has 44% expiration.

Seemed to me like an opportunity to get into my first property on a Land Contract (I won't be able to obtain a mortgage for at least another year, as I'm a 1099 and need two years of commission history). She bought this home at $73,500 about 15 years ago.

Homes in Cudahy have since appreciated about 20%. Because of the Ch. 13 and her refinancing, there is a lot of uncertainty still that I'm trying to iron out. She says she paid 930 a month including taxes and insurance, but I think that was to pay down the loan sooner (something I'm trying to get clarity on).

The opportunity to get into a rental at only 1K down seems like a pretty great cash-on-cash return. I hadn't planned on buying a rental for at least 2-3 more years but this seems like an opportunity worth pursuing. 

Any tips on numbers I need to garner, cash-flow benchmarks I should obtain, and general Land Contract experience (not something I have dealt with as a licensed real estate agent) would be much appreciated!

Disclaimer: I know this has a lot of holes in terms of info I need to still gather!