Also - when you use a high-interest loan to buy the property - like hard money or private money - usually the cash flow doesn't work out because the loan payment is so high.

I will be doing some work, but will also be contracting work out.

I don't know if it is state wide but the counties in and around DFW have limited us to 1 water well per 2 acres and aerobic septic to half acre lots. 

Since the seller doesn't have much equity it's more than likely not going to work out.

Now that's sort of regardless of equity, but if the borrower has equity in their property and realize it, they may be more inclined to do a workout so as not to lose it.

I know you to be a good judge of peoples character-- I am sure it will work out for the best, we are all just worrying for you so that you do not have to.

Hey Ben, I'm looking to purchase a condo/property in Riverside as the numbers (purchase price) work out better for me, so I agree with you on the 'making sense move.'

Maybe we can work out a deal. 

In this situation, it is my recommendation that you work out your contract to be the one who benefits from the negotiation.  

Worst case scenario is a situation like yours which we all see how horrible it turned out, but best case scenario is none of the numbers work out and you don't lose much money but you really don't gain anything,  and therefore the whole experience is really like sitting in cash and therefore not even an investment.