Buying Properties on existing LC

[Warren Foster]

In the course of searching for buy and hold rentals, I have been offered several properties that are currently under existing Land Contracts which leads to a couple of questions for the experts here.

First, what are the pros and cons of buying existing LC as part of a long term buy and hold strategy?

Second, how do you evaluate these?

Here is an example of one such offer:

Sale Price = $29,900
LC Sale Date - 11/1/10
First Payment - 12/1/10
Sale Price of Property - $55,500
Down Payment - $2000
LC Balance - $53,000
Interest - 10.5%
Amortization - 30 Years
Balloon Due - 10/27/15
Principal & Interest Per Month - $484.81

Thanks for your help,
Warren