Do the math.

This is a awesome lesson in sticking to the math, not getting emotional, and being ready and willing to walk away if the numbers don't make sense.   

I am more interested in doing my homework to figure out how to approach the situation legally.

Yes, you're correct that the math should have been $92K.The home sold 3 years ago for $105,000 in the same condition as I'm purchasing it.

We are new to investing but have done our homework and are fairly comfortable analyzing single-family deals and moving fast when we see a good one.Any stellar investor-friendly realtors you can recommend?

@Derek Hamilton I'd do the math on what you'd be saving after you include principal paydown on a primary residence to get an accurate picture. 

The math;  any market that is growing, new jobs, take a min wage job of $10/hr and a somewhat better job of $15/hr and multiply times 160x hrs (1 mo) =  10 + 15 x 160 = 4k after taxes = $3200 so qualifies for $1100/mo rental. 

I just want to make sure I am doing the math right and adding in all the right variables.

Hard Money allows you to be more in control of the process and a clear outlook on profits and cost.All in all, when determining which course to take, make sure you do your homework and know your math

Can you help me run the math and check my numbers?