Thoughts on this property...

[Todd Bullinger]

Just wanted the opinions of people who knew more than I do. Here are some details on a potential deal. Owners aquired a larger house with the death of a grandmother and just looking to drop this house for what they owe.

Appraisal - $55,000 in 2005
Purchase price - $48,000 includes all closing costs
Private investor - $8000 @ 6% over 4 years
Mortgage - $40,000 @ 5.5% for 20 years
Monthly PITI - $550 for the first 4 years
Monthly PITI - $375 last 16 years (paid off initial $8K)
Rent - $625 and can be immediately rented

Currently have another property that has a positive cash flow of $225 and is also in pretty good shape and no anticipated major repairs.

I understand that there will be a lot of debt to this house initially. Previous owners took great care of the house, no repairs needed. Thoughts?