You as a wholesaler (I’m making this assumption since you posted in the wholesaling forum) can not assign the contract because banks doesn’t allow assignments in their purchase contracts - they have specific language to this effect.

If so, this is a flawed assumption.

The assumption here is that your asset has a shelf life, and will need to be replaced (like machinery in a factory).

This might not be the worst deal in the world, but when I run it through with more realistic numbers, a lower down payment and shorter amortization, I get before tax cash flows of maybe $7000 a year, cash on cash of about 5%, and a cap rate below 7 - and that's assuming you don't have immediate capital expenses to worry about, which is probably not a great assumption going by those pictures.

This would be a great time to evaluate all of your assumptions and make sure that the purchase of this property is your best move.

But again, these numbers are assumptions.

I am working on the assumption that the -255.06 payment is just interest and it does not pay down principle. 

Also, some folks make assumptions about investors buying dumps and making a ton of offers before actually closing.

I have made an assumption that I will probably get more cashflow per month as room for rent vs the whole unit. 

Also keep in mind that you basing all of your assumptions on the current asking price.