Help Me "Contol" This Property Please!!!

[Mark Graziano]

I found a home today located near (.5 mile) a large university in Atlanta which is 3bed 2 bath. It was recently purchased with cash by a non- local investor for 50k according to zillow and he has put it back on the market for 89k without touching it. I went to view it today and he says that he paid 75 for it not 50. Whateve,r not the issue. The market value of the home is around 105k and it would make a great rental. The issue is how do I control this property in my situation.

Two months ago I took out a personal loan for a property, so I do not have the funds to go the traditional financing route. I have private funds available and his personal rate on those funds (home equity line) is 6% so my rate be be north of 9%. He also has a preference for doing flips. Doing the math on the property with a traditional 20% loan it looks something like this

Purchase Price (Max Offer Price) $90,000

Percent Down 20% Down Payment Amount $18,000

Amount Financed $72,000 Interest Rate 4.85%

Closing Cost $3,150.00

Costs of Repairs (Make Ready) $7,000

30 Mortgage Payment $379.94

Rental Income Monthly Annual Unit A $1,050.00

Vacancy Rate 5%

Net Rental Income $997.50

Expenses Monthly 

Property Management Fees $105.00

$- Leasing Costs $50.00 $

Maintenance Reserve $60.00

$ Utilities $12.00 $-

PropertyTaxes $45.83

$ Insurance $80.00

Total Expenses $352.83

Net Operating Income $644.67

Net Cash Flow $264.73

HELP PLEASE, this looks like one of those properties I would be fool to let pass by.