Contract for Deed Deal Advice

[Junior Salters]

Hey guys,

What are usually the required numbers you look for on a contract for deed deal? Max LTV? Minimum Cash flow per month? etc

I have a guy wanting to sell me a house for $60,000 that is worth $82,000 that is wanting to get out rental business. It is in a blue collar neighborhood where houses are selling from 80-90 depending on amenities. He had contractor go through and says it only needs 3K worth of work. I know this may not be the most accurate but for the examples sake:

Private money loan of 65K acquired at 8% interest only payments of $433 for 10 years.

Purchase price of 60K and out 5K into it.

Do Contract for deed at 84K with 4K down at 8.7% for 15 years for payment of 803.58.

Collect difference of PM loan and payment of $370.

I'm sure it's not this simple and probably left out some parts so I welcome all advice.

Thanks!