Folks - I am starting to bid on hudhomestore properties and if a bid is accepted I have 24 hours to do an inspection before submitting paperwork. If you are an investor, kindly PM me good references to home inspectors...

You mention the owner has paid $70k on the mortgage but that isn't a number that matters (since who knows what interest rate he's on or if he's made any extra payments), what matters is what the outstanding balance is on the mortgage and can you offer them a purchase price that is A) Fair to the owner, B) Helps them sell with some amount of equity and C) Gives you room that it financially makes sense.The numbers change based on if you want to flip it or rent it, making the question "does it make sense" different based on the direction you choose.In short, I have no idea how much I would offer...

Not sure, if 11k is enough for a down payment or not, but that's what I would do.

It might be more of a concern in a complex dominated by owner occupants, who would be more likely to push through HOA rate hikes that are less likely to see a net gain for an investor.Your cashflow is entirely based on how much down payment you bring to the table and terms of the loan.

Account Closed,Lenders typically start their own "wheels" in motion after the third missed payment, but it can still take a while before they get to the point of beginning the process of foreclosure.That said, Brian called it: offer him what he owes  - you decide if you want to give him any more than that as an incentive to cooperate.

I got the house for $31800 with a 10% down payment so I still owe $28620 with an interest rate of 4.42% (that can be adjusted in 5 years), and a monthly payment of $179.90.

If paying PMI, you can always find a mortgage calculator and input your own figures to get an estimate for monthly payments after your escrow account. 

what is typical for a down payment if someone owner finances?

If I buy property A using conventional loan with 20% down payment, 5% of purchase price as closing cost estimate and $7K in repair, I'm looking at out of pocket cash of approximately $30K.

It would most likely trigger the due on sale clause.A scenario that may work though is if the amount remaining on their mortgage is less than what you are willing to offer as a down payment or they were willing to pony up the difference.