Good or Bad Deal

[Mitchlyn D.]

Here it is:

This morning, I spoke to a real estate investor who says he is multi millionaire.  He makes about 18K per month so money is not an issue for him.  Here is the deal he offered on one of the houses:  

Cost: $20,000

Down payment:  $5,000

Interest:  0%(for the 1st year)

He also says I can begin to pay off the $20k in a year and wants $250 per month.  The house is in a C+ area and lowest i've seen the rents in the area go for are between $500-$900.   Here is what the appraisers website says about the property for 2015:

- Assessed value:  $32,000

- Taxes:  $624.73 

I know I still have to get an inspection done which would really tell more of the story.

Now with the questions:

Is this a good deal?

What should my next step be?

What would you do?

[Manuel Prado]

Location is key and the members have drilled on that. I believe your are doing your due diligence and continue doing so you know if it's a good area. I personally would stay away from a D or bellow Thant D area. If it's C, then make sure you put a good 7-10% in the vacancy slot on BP calculator to be on the safe side.
Take a good look at the roof and mechanicals so your capex won't be hurt in the short run. Good luck!!