Larry Goins Course Strategy

[Charles Stewart II]

Hello,

I am asking for opinions on the strategy used in one of Larry Goins courses.  This is a brief of how it was explained on Ron LaGrand's website: 

"If you buy the property for $5,000 and sell it for $30,000, you can ask for a $1,000 down payment and finance the remaining $29,000. If you finance that amount for ten years, at 11% interest, the payment will be $399.48 per month. Most people will be able to afford a $400 mortgage and they should be able to find a $1,000 down payment as well."

The idea is that you are getting the house a such a low cost because it may be a distressed property with minor repair needs.  You would pay off what you have "in the house", which is $5,000, within 12.5 months.   At that point, the $400 paid to you would be all profit.  You wouldn't have rent repairs because the person is buying the home, not renting.

Does this appear to be a good investment strategy? I feel it is, but I would like to hear from community members here on Bigger Pockets.

Thanks in advance!