Not sure how to analyse deal.

[Barbara McArthur]

The real estate deal I just put together doesn't fit neatly into any of the calculators so I'm not sure how to analyse it. I've run it through two calculators and it looks like a good buy in both.  Since I'm new to real estate investing I still feel unsure.  So here's the deal:  This is a single family wood frame house built in 1900.  It has 3 bedrooms, 1 bath, formal dining room, full basement, library (probable bedroom #4), very large attic (possible bonus rooms (?), and two car garage (off street parking in this neighborhood very desirable).  It is close to the schools (all kids walk to school).  The assessed value is $44,000.  The seller agreed to hold the loan at $36,000, 4% simple interest, payment of $240/month with balloon payment in 5 years. Half the roof needs to be replaced at a cost of $5000 but it will last another couple of years. There is a hole in the porch roof that should be fixed this year at a cost of $1200. Nice extras are all hardwood floors, several leaded cut glass windows. I intend to live in the house for 1 or 2 years while I repaint the inside in neutral colors. After that I'll move to a BRRRR. It should rent for $800-$850 per month. Once the roof is fixed it will qualify for FHA refinance which I will do when the balloon payment is due. What do you think?