First rental deal in the works, need a bit of advice please

[Jesse R.]

Howdy, 

Long time lurker, first time poster.  I was waiting until I had a good scenario/question to pose to the group before I made a post so here it goes.

I've been speaking with a client of mine who wants to sell his SFH in the Spring area. I know the market well and am confident in a rent of around $1400 give or take $50. The house has 3 bed 2.5 bath, 2300 square feet, brand new roof and new a/c unit(2 years old). The interior needs paint, flooring, appliances and minor touch ups. The exterior needs minimal work. Overall the house is in very good condition in a nice neighborhood.

After speaking with him, he owes $30k on the loan and wants to sell the place to be able to pay that property off as well as his primary residence, which I believe was around the same amount owed.  He is willing to sell the house at a discount because he doesn't want to do the work himself, but he did mention he wasn't going to sell it low enough to be able to flip.  We have not talked numbers or financing yet but he said I can bring in an inspector to take a look around.

The last piece is that I'm self employed, earning around $30k a year, no debt, around $35k in cash I'm willing to invest, though I would prefer not to spend it all on one property.  From my research and prior loan experience, I am not too confident on getting a loan large enough to cover this type of property.

I would love to do some sort of owner financing that gets him paid and still have a solid cash flowing rental.  Does anyone have any suggestions on how to finance this type of deal or general thoughts on how I'm approaching it?