If I just took over the property, I'd give him the benefit of the doubt.

If you have good credit and an income, you should be able to obtain a 70% loan on the real estate alone, but I doubt you will get much at all on equipment....used rest. equip. is almost 10 cents on the dollar.Another aspect might be finding another resturant owner and partner with them.

Based on the information provided I doubt you would have much issue with qualifying should you want to proceed.

@Joel, I'd have to agree with what you've said about offering the quality of work and not giving the doubt.

Originally posted by Jerry Rode:The 50% rule for rent comes into play right around the $2200 per month at a purchase price of $225k.Actually, I doubt that.If you could theoretically get 100% LTV on a $225K loan, given 50% expense ratio (including rent loss and capital expenses), you'd need to get a 30 year fixed mortgage at 4.25% just to break even.

That perseverance was most critical during the first year as I tried to overcome the learning curve and self-doubt.

This story would have been much different had you bought there in 1980.2) Unless they paid cash for that $112K property in 1980, your parents have no doubt paid a considerable amount in interest on that property.

If she's actively trying to sell the place FSBO and its not on the MLS, she no doubt gets approached by numerous agents waning to list the place.

I doubt you want to deal with the types of places/areas that would net you the cash flow others here are talking about.I agree that there won't be much appreciation, so you need to get a good deal going in.

I doubt if they will be enough to cashflow but its a good idea.