If you can make that happen, then you've essentially bought a second house for free, steered clear of closing costs, taxes, & realtor fees, & have been able to keep your old house of which is probably still appreciating, still cash flowing, & is giving you immaculate tax benefits such as depreciation. 

If you could do 20% though, you'd get rid of that PMI which would make a big difference in cash flow.If those are the definite returns, I'd steer clear of that property.Also, is that an exact quote for after-purchase repairs?

To me the $2000 less that the landlord could have made with all of its collection problems (renting a mobile home) steers me once again to what I've been doing, selling properties and toting the note.

If any lenders have a history of doing this, I would steer clear.

I bought a old (1986 G20) construction cargo van for 1600 and then paid my mechanic 700 to do some maintenance and updating (steering linkage, tune-up, air bags on rear).

@Chad Magill knows the area much better than most, so he will steer your right.

Great advice Darren, I would also add that realtors are bound by laws against steering clients away from certain areas.

I decided to steer clear of this until I gain a little more experience. 

Steer clear, I'll share my materials with you free of charge...just reach out.  

Hopefully, I'm wrong and the OP can provide clarification, where BP can help steer him to a beneficial long-term solution.Best regards.Mike