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...

I also like to determine a ball park price/square foot amount as a screening tool--based on the average rental rate in an area.

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.

They're based out of L.A. but they finance deals all over the country at competitive rates.

Based on your numbers for your primary home, you should be able to easily make well over a 10% return when factoring in all costs.To me, this is a no brainer!!

Also, we are holding a Portland based BP meet-and-greet on October 11, in Northeast.Good luck.

I am based in Canada but planning to move to US soon.

I am based in Canada but planning to move to US soon.

I'm a graphic designer based in Athens, Georgia. 

I have no problems stating that they know their business, understand the market and in many cases, for certain areas, literally know building-by-building who owns it, when it last traded, the condition of the property, the tenant base, etc, etc.