No more assumptions for me.

Husband & Wife owned property - Husband recently passed,Wife cannot afford the house repairs (Needs new roof) and wants to sell the house fast with cash.house needs repairs but currently livable,When comparing recently sold in the area, I believe the house is priced high considering the rehab its requiringSeller wants 85,000 , 2bd1/bth 750 SQF.Similar newer and better maintained houses sold for around 90K - 100KNow heres my thoughts:Considering she's an older woman, and i am under the assumption that she wont want any new "adventures" at the current situation, given she could not afford maintaining a house she owns free an clear, I am attempting on structuring a deal where she could be my renter while paying the property (Contractor for deed)With a "Contractor for deed" i think of offering  25%+- (20,000) Down on the deal and get equitable title - Which will include the fixing of the roof using my own GC + Potentially updating house deducting the labor cost (Should she would be interested) The lady would rent from on a fixed market rent for the duration (850$)  - Paying off the 65,000 with 20 Yr monthly installments of 270$, Leaving me with 580 Gross income monthly.Summary:"Contract for deed"Asking price: 85,000Down payment for Equitable title: 20,000K20 yr Installment plan: 65,000 / 240 Months = 270$ Monthly"Fixed deal" Rent / Tenant pays : 850 - 270 = 580 Gross incomeAll in all, Lady gets to live in her own "Rehabbed house" with a long term leasing agreement and gains confidence and less hassle.I know there is alot behind these type of deals - but that's my general idea and would HIGHLY appreciate your input on this Steeeeep learning curve. 

I'm not saying to completely trust seller-produced financials but it's better than debating different modeling assumptions.

Assumptions and negative sidetracks, aside, deals down within legal limits and with proper disclosures provide great integrity in business... something I love to see in action.

It could work out fine in some markets I would guess and my assumption is that guy #1 would spend some money on repairs but probably not a lot.

By doing the 203k reno and refi you are making the assumption that you will be able to refinance under terms that are still favorable and that the home value has increased significantly enough to make it worth refinancing.

By my calculations with some rough estimates (and general assumptions without knowing your situation/credit score/etc)... 

I make no assumption on how the seller got to a nice ROI and the buyer's financials eg all cash or w/mortgage, as ROI is ROI.Personally, I'm all MFUs for the economy of scale, increase GSI with similar expenses AND I can force appreciation by increasing rents - - but that's another subject all together.

It makes sure people don't make assumptions or misremember the deal you had.

I'm putting 7/8 of the money and all the work yet his logic was I couldn't do the deal without that down payment, wrong assumption.