Contract for deed deal - need help analyzing

[Joey Dman]

The property:

There's this 2 bedroom 1 bath house for sale in a small college town. It was described as a "small cottage" and has an attached garage. It was a distressed house that the owner bought and refurbed over the past 1.5 years (electricity, paint outside and in, flooring, bathroom, driveway).


The numbers:

$8500 down
$300 payments
$38,000 left on loan
1.5 years left on contract
Comparables at $55-$60k (supposedly)
Could be rented for $550/month (supposedly)


That's the information he gave me. I really don't know what to make of it. I'm guessing there's a balloon payment at the end of the 1.5 years. Help me out if you please, oh wise ones. I'm still learning.