Would you do this deal?

[Joe Delia]

4/2 1800 sq ft, large lot, located in greater cincinnati, rented for $875, $62,500 20% down 8% interest, two year balloon, 30 year am. Comps point at 55K. House is dated but in good condition.

If so, why?
If not, why?

[Michael Lauther]

Joe: given my admittedly lack of experience in financing low value real estate does the fact that most lenders will not finance deals below a certain threshold account for the value of owner financing at a premium? Your deal then represents a value for a certain investor class of individuals who can not get traditional financing at a rate less expensive and with terms longer than they could get with hard money. Am I evaluating this in the right way?