Loan assumption questions

[Josh Hasty]

I am looking at a property that is currently owned by an out of state investor with severe health problems that doesn't want the house anymore. He owes more than I am willing to buy the house for due to low cash reserves for down payments and closing costs. However, he will let me assume his loan which will be 60k at 5.75 interest rate. PMI should be about $500.00 and the property will rent for $1,500.00 with 5 students at $300.00 a room. Cash flow is great, if this works. My curiosity is around the loan assumption piece. Has anyone done one of these deals that could advise me on possible downfalls?