100% financing deal

[Darin Smith]

I have a builder offering me a rehab for $119,900. He will take a 2nd for $24,000 that will serve as my down payment. After a couple of on time payments, he will then forgive the 2nd mortgage leaving me with a purchase price of $95,900 which will also be my loan purchase amount. The Zestimate is $154,000 but we are assuming an appraisal of $130,000. The neighbor's house sold in 2008 for $142,000 with same characteristics-bedrooms,baths etc. This will be rehabbed so it could be worth more. Next door is an empty lot that same builder wants to put up a bigger house. This area is an inner city but has been experiencing a lot of investments by the city. They have torn down neighborhoods and built real nice new ones. Its is also a couple blocks away from a minority college. A monorail is being built nearby. He will even mark it up a few thousand to pay closing cost so my out of pocket will be just a few hundred bucks if any. His wife is a Real estate agent that will property manage it if I desire. I plan on renting. Its a 3bed-1bath that supposedly will rent for atleast $1100-$1200. Positve cash flow of $200-$300 based upon that rental amount. Good deal for first time investor with no money? I only have a couple thousand to my name so this seems to be the only way I can get in a property.