Last two we soldSell Price 105, 000 bought for 43kSell Price 124,000 bought for 32,000 ...what you dont see here is the amount of renovation required, this one needed new septic, roof, hvac and the list goes on.If I would have offered 30% of ARV on any of these, I would lose/have lost money on all of them.

One small mistake in investing in an area that you are not personally familiar with could turn a higher return into a losing investment.

My calculations have you losing money if you choose to go through with this deal (based on hard money loan to buy and rehab).

You win some and lose some.

Doesn't make much sense for them to lose all their $$$ on the contract for on a $3800 tax lien when it sounds like it is valued extremely higher.Not saying you couldn't make something work but it seems like something is missing from this picture.

Since the low value title policies are only $400-600, he'd be losing money.

If you can afford it without losing too much momentum on your other investing it might be worth going for.

Then with the money saved up by not paying rent/mortgage you take that money and roll it into your new flip/rental venture whatever floats your boat.

It's worth ~$200k or so today after $30k rehab.After you register for the auction, bid, and go back and forth, and win/lose.

Gotta net out the value from the RE.Look to the old sales generated, but you also need to take into consideration what kind of operation will replace the old business, a significant change in menu won't be the same and consider the blue sky falling since it's been closed.If that owner has medical issues, seller financing may help him save on his estate preservation, if he gets cash it could be required to pay medical expenses and lose what he gets, financing it will usually take him to a discounted market value of his note, savings can be significant and save in keeping other assets.