Is the loan assumable?

Let's assume I'm working in a vacuum, where there is no appreciation, no debt, stable rents, and the 50% rule applies.

However, the lender will keep her on the note unless the court orders differently, I have not seen that done.If you assume the debt yes, you would have to qualify for future financing with the obligation assumed.

I use this to initially screen properties in areas with demographics similar to the one you chose.a $42,000 price assuming no rehab should through off at least 2% in rent for me to be interested. that translates to 840 a month in rent and that exceeds even zillows estimate of 700 max. the most this property could sell for for me to go any further would be 35,000 before it got my attention.If it could be had for 35k that and could be expected to gross 700 a month then the 50% rule says I should net 350 a month after taxes ,insurance, vacancy contingency, property management and maintenance.

There are people still living in the house, I assume they are renters of the person who got foreclosed on.

I assume everyone has high speed connection these days and didn't expect it to be too much of an issue.

Taxes are factored into the expenses, (14,300).Assuming the numbers are as stated what do you guys think?

DON'T try to adjust numbers to satisfy current owner, this is business deal needs to work for both sides especially you, you are assuming all the risks.

You might pull 7K for the option but the payoff must be assumed so that means you're selling way above MV.

You say you're getting an FHA loan, so I assume that means 3.5% down.