It would also be great to hear from those of you that have seen many come and go what you think are the common qualities/weaknesses that promote failure?

On the owner finance if you get little to nothing down and get them to hold for a low debt service say 3% interest rate principal and interest instead of a 6 to 7% rate that is better.Looking at this deal it looks very weak.2,300 month X 12 = 27,600 potential gross rentBack away 60% costs because of landlord paid water27,600 X .40 = 11,040 NOIAt a 10 cap that is 111,040 purchase price NOT INCLUDING all the CAPEX needed you are talking about which is in the tens of thousands not including what you can't see in the walls etc.Even at your 225k you are looking at a 4 to 5% cap rate before CAPEX.

I am a US Army vet currently working in the security field, both of which have left me with a lively case of chronic insomnia and next to no time.

Check other structural weak points (areas around doors/windows mainly) and see how they look.

I work offshore so when I am home is random so haven't been home or made the time to drive 45 min and join the local REI group.What I am currently looking for from this community besides continually educating myself is a Hard Money Lender for Louisiana that does ARV (After Repair Value).The type of investments I am looking into are Single Family homes in pre-foreclosure or just in a weak state that I can capture some unrealized equity in through fixing it up, then converting my hard money loan into a conventional.Appreciate any tips and advice,-Seth Cunnigham

Mostly because I am a knowledge fiend, which often leads to analysis paralysis, and I know that is a weakness of mine.

That's my biggest weakness.

It was very apparent to me that the real estate market in the small town where I live is very weak.

Based on the information you provided, I show PITI of $927/mo, of which $644/mo is principal and interest.Using 50% rule, you would make approximately $56/month cash flow.Using 2% rule guideline, you're at only approximately 1.05%.These are both guidelines, of course, but the numbers look quite weak.

Without a deed in his name the new owner is in a weak position.