I would recommend anyone that gets started has at least a list of 10,000 to ensure they can get 1-2 deals that first month. 

I'm interested to see what you more experienced professionals think of this deal as its structured as well as being in the predicament of having our agent represent the seller ( as himself) and us as the buyers.

What made you interested in investing in this type of deal?

What you’re suggesting is not cash flow, it’s return of principle, giving her her own money back  If she sells with your deal.

I was referring to Owner Occupied foreclosures in particular, when warning to stay away from foreclosures in certain states.I agree that door knocking would be the best way to get these deals down.

Is there another way to structure the deal with all 3 of us?

Omni Key sells mainly single family with some duplexes, and advertises off market deals on new construction and in fill properties.

Crexi, Loopnet are probably the two biggest but why not work with an agent that can present you with multiple off market and listed deals?

Reach out to him he was great to deal with. $8900 is not profitable!

@Marc Zak look at the free calculator here on BP to see a pretty good model to analyze rental deals.