This isn't a problem from a cash-flow standpoint or even an equity standpoint, the problem is with then lenders wanting skin in the game.

That leaves $625 for debt service and pre-tax profit.If you want to make $100/month in profit, that means you have $525 left to pay a mortgage.

Example: If you can sell the property for 150K with costs to get it sold of 15K (commissions, closing fees), spend 100K buying and repairing and holding costs, this leaves a pre-tax net of around 35K (150 - 15 - 100 = 35).

This leaves $13000 for PITI, which, according to the seller's old pro forma we were given, was approx. $10,500/mo.

I'm trying not to be discouraged...And I certainly don't want to jump just because it seems like a good deal...I think the part of my equation that I'm not factoring in is this:If I get the home at the rate I hope (60k) and I borrow 80k that will leave 20k in reserve.10k I will keep untouched for unexpected things.

Tell them if they are interested then leave a message.

Diane,You will need to figure out what the market value for the home is right now and figure in a percentage to come up with your sale price.You can either leave the rent where it is or increase it $100 and tell them that the extra money will go towards the purchase of the home and it will help them with closing cost.

The problem is that this note would pay out in less than 12 years, leaving a balance on the underlying mortgage.

Leave it on the market.

what i have looked at i just see what the houses in the neighborhood appraise at then how much repairs are needed on the house and put the numbers together to come up with an offer im sure im leaving something out but dont know