Could be legit, up to you on whether you want that low of interest rate for owner finance.

I generally list my property low for a month just to get some booking and 5 reviews. 

Hi Kendric, Ohio, and other midwest cities are good choices for low-price entry.

People focus on the rates because they are a singular number and easy to understand but you can lose money on a rental at a low interest rate and get rich paying a high interest rate.

By exploring options for cost-effective utility usage, such as installing low-flow fixtures and implementing irrigation systems, we can significantly save on water expenses.To keep things running like a well-oiled machine, you’ve got to have a rock-solid asset management plan.

Nor would I pay retail for a property with that low proforma return even though I like PR.  

I would highly recommend doing a renovation loan like the 203k or homestyle - you are able to leverage SO MUCH CASH for such a low down payment. 

Does anyone know a lender willing to lend on 40k with a day out of foreclousre up to 50%LTV with a low 500 credit score?

A simple baseline plan might’ve steered him toward properties with more reliable maintenace histories or a stronger neighborhood profile, saving him a lot of sweat.

There are a million low cost or free options out there.