First time Flop. Very Discouraged

[Renata Johnson]

I'm a 32 year LPN that is just getting into real estate. Before joining Bigger Pockets, I signed a rent to own contract on what I thought I would be a great investment. We are living in it as we rehab. The landlord charged no deposit since we were doing the repairs ourselves. GREAT! We have been rehabbing and I have started using Bigger Pockets calculators. I needed numbers so I looked at my contract and it said 240 principle 240 interest 240 tax and 8% interest but no total price to buy. I looked up the tax assessment as it said 32285. When I asked him for a total price he said 79500 but if I got a loan he'll sale for 60000. I was expected about 50000 for him to make a profit but almost 80000?! I know he has to make money but the house wasn't in the best condition and still needs a lot of work. I have the option to sublet after 2 years but rent is 825 and Zillow has a estimate of 695/mo so even If I charged 900 I only make 75 a month and it maybe hard to charge that amount. I looked at comps and there is one place charging 900 on my street but it beautiful and required a lot of upgrades. Also, he makes me feel very uneducated. I've explained to him that I am using this an investment property. He proceeds to tell me about how impossible it is too get a loan and his way is the best option for me but IF I can get it, the price is 60000. Long story I know I made a bad decision. I am still able to leave the contract without penalty and haven't spent too much on rehab but Ill lose that little bit of money. I'm just a little discourage. Looking for advice, success stories, or anything to keep motivated. About to read a few forums as inspiration

[Jonathan Greene]

How did you even get into this deal? There are so many errors I don't even know how to configure a way to explain why. Walk away and start over. Whatever you are doing here is all wrong. Was there an agent involved? Did you have an attorney? Have you done title on the property? An inexperienced off-market buyer dealing direct with a seller is a disaster. Nothing makes sense on the numbers end of what you said.