Deal Advice

[Tom C]

Need some advice on a possible deal.

I found a desperate LL that needs to dump 3 SFR all near each other due to relocation out of state. I am working with his friend who is an experinced LL and helping him sell these homes. We are going to sit down Saturday and try to work out an arrangement most likely will have to go land contract. Here are the numbers.

Was asking 59,9

Estimate appraisals 23K, 23k and 30K per home

Willing to take 45K

Combined taxes are 77.00 per month
Combined Insurance 120.00 per month
Combined water and trash 90.00

Monthly Payment ?

Combined Rents 1250.00 per month

It sounds like I might get away with no money down, but my fear is that he is going to ask too high of a monthly payment to meet the 50% rule. I'd be willing to go as high as 600.00 per month. My dilima is that this is a great chance to pick up some fairly nice cash producing homes and is it worth the risk to go higher on the monthly payment to get my foot in the door temp. until I can pull a refi and pay him completely off which mostly we would work a ballon payment at 3 years? What would a typical monthly payment be on a land contract with no money down in this situtation?