Would YOU consider this deal?

[Charles Willie Harris]

So my 18-year-old nephew is the one that got me into real estate. He's been doing this for about a year and he's already done a few flips and deals (as opposed to me, who's only been doing this for two weeks).

Anyway, he reached out to me about a deal he found and he's actually looking for me to see if I was interested. I've never evaluated a deal before and I'm still on the fence about going in on it being so limited in my education. 

I need some help evaluating the deal and asking the right questions about it. I

Here's all I know so far:

1. The property is under contract at $55,000 and is going through Title
2. He'll be discussing with the owner for Land Contract(Seller financing).
3. If this is accepted, that's 20% down
4. $15k in rent rehab for a hold.
5. It's been certified by an inspector as Rent ready but he's thinking of adding an additional $5k into it.
6. $400 a month to the owner for utilities, taxes, and fees.
7. Will rent for $900-$950
8. All in for this option would be around $26k
9. With monthly expenses still cash flowing over $400
10. Over 18% ROI.

So he's been telling me there's a lot of opportunity into this. He's looking into the FOIA packet at the moment.
Since I'm so new at this, I feel like there's a bit more information that I need in order to find out if I'd like to pursue.

Any recommendations?

[Jason D.]

@Charles Willie Harris so let me see if I understand correctly... if he ends up doing seller financing, he's putting down $11k, plus another $20k in rehab.

Then he's paying the seller $400/mo for taxes, utilities, and fees? That should not be paid to the seller, that should be paid to the appropriate place (city, utility company, etc...)

What about the payment for the $44k loan the seller is holding? Is that included in the $400?

What are the terms of the $44k loan?