Buying in a Class D neighborhood

[Reggie Maggard]

Im currently looking at a house with an asking price of 52k. The pro forma states that the rent is currently at 775. The rent to cost works out to be in the 1.5% range, with PM. My question is, how do I verify the rent and everything else in the data? I was thinking of asking the current renter for 5 min of there time, maybe even give them a gift card for their time, and get their take and any property history info they may have.

Also, if everything else checks out, my plan is to use a HELOC to purchase it and then rollover to conventional financing in a 30 yr fixed. Just for a smoother and quicker transaction.

In order to get all my HELOC cash back out, how much will it have to appraise for? I assume 20-25% higher than cost right? Probably still gonna cost me 5-10k out of pocket is where I assume I will land.

thoughts?