Helps get your feet wet and reduces risk a bit. 

Now subtract carrying & closing costs.

I am currently weighing the potential decisions on how to move forward against each other: 1)Accept the $50 less than posted and place a tenant that met all screening criteria.2)put the home back on the market for the listing price and risk vacancy.3) propose that we agree on a rent in between, which would be $25 less than the original listing price. 

So, a big risk and one that a lot of "fee-for-service" business owners are trying to avoid. 

We can be more aggressive and open to greater risk as we accumulate more capital AND experience.

Then when it comes to financing this is where you can increase your offer slightly if its owner financing because he can provide cheaper financing than a bank and he will ultimately make more because he is getting interest on a loan.When he asks "why do you get a profi"t you mention that you are taking on the risk of fixing up the property. 

You need to clear all debt if you are going to jump into the fray of high risk investing.

And be sure to check with folks other than your family banker (where you carry all your accounts) - you'd be surprised how much price / term shopping can save you on each deal.Best of luck to you and I look forward to following your journey!

But you're running a much higher risk than you should have that he will find some way to turn his terror at the proposition of being homeless after so many years of housing security to something he's more comfortable dealing with, resentment.

You really should consider getting title insurance as well but that's a risk you'll have to decide if you want to take.