is this a good deal?

[Enrique H.]

A friend wants to sell his house because it needs repair that he can not afford. 

Its in Trace lane, Indianapolis, IN. 46260. comparable houses  are around $175k, 

The mortgage  will be kept in his name with a balance of 102k , he wants 20k and repairs are around 10k to 15k ( new roof, HVAC and windows).  He will rent it for me for $1250 a month. 

PITI is $950

Please let me know what you all will do?

[Account Closed]

I would stay away from this deal. Even an attorney cannot protect you. The only thing an attorney can do is write an agreement that you can spend thousands of dollars litigating in court. It is not advisable to put money into a property when you are not the 'controller'. I don't give one penny of my money to others when I don't have 100% control of the outcome.

You need a legal Lease Option Agreement and you have to open an escrow to close before you spend one penny. Then, your friend will have a legal obligation that you can sue him for. Or, maybe your friend can add you to the Deed, Title, or whatever you have in your area.

The problem with doing business with anyone is people's words mean absolutely nothing and even written legal agreements are useless when it costs you tens of thousands of dollars and five years to litigate a lawsuit that you can lose even when you are 100% in the right.

Earning money is very difficult and takes a long time to build a wad of cash. Losing money is very simple and happens within a few seconds.

Whenever someone asks a question like the one you just asked I say that when you are not 1,000% positive then don't do it. There is always another day to lose your money.