I have read that a lot of investors, especially on low price properties like this, use a 2% "rule" of monthly rental income divided by 2% to quickly see if a deal warrants further inquiry.

http://www.houstontx.gov/ips/banditsigns.htmlViolators are subject to a fine between $300 -$500, can be taken to court, as well as have a warrant issued for their arrest for breaking Chapter 28 of Houston’s code of ordinances.

Of course, if there is present danger or fire hazard, calling the authorities would be warranted.

I think they are non warrantable.

Contact me via my cell or just shoot me a text if you want their contact info and I will forward it to you.Bank Statement ProgramMortgage Solutions for Agency Fall-OutNo tax returns requiredBank statement deposits used to qualify24 months personal bank statementsLoans up to $2 millionCredit scores down to 660Rates starting in the 5’sUp to 85% LTVDTI up to 50% consideredOwner-occupied, 2nd homes, and investment properties3 years seasoning for foreclosure, short sale, BK, DILNon-warrantable condos consideredJumbo loans down to 660 score7/1 ARM or 30-year fixedNo pre-payment penalty for owner-occ and 2nd homesSFRs, townhomes, condos, 2-4 unitsSeller concessions to 6% (2% for investment)

If the homes are not of high enough value to warrant descent quality buyers it is very high risk.I have flipped mobiles that sell in the $65,000 to $100,000 range and have no problem finding buyers.

Not as good as it used to be but still a valid strategy if your circumstances warrant.

But maybe more details will make it easier to answer.IRS $21,300 Blocked out name    $143American General Financial  $3300Child Support (Oregon) $200/month entered Sept 2010State Tax warrant/Dept of Employment $17,000Midland Funding $5000Wells Fargo   no amount listedRedemption rights...there is a date listed....is it 6 months from that date?

Goodman warrants the heat exchangers for the life of the original homeowner.

Loan terms are relative to the risk and you didn't really describe enough of the deal or risk to understand what may or may not be warranted.