Help with offer for personal SFR.

[Joe Edwards-Hoff]

I'm looking at a place in my town. It looks to work out on my math formula I have in excel for a potential rental. It would rent for 1150. If I want to put 45% of gross rent aside for expenses and have $100 cashflow, I could still make a $560 principle and interest payment.

I would like to move into this house for a year or two before renting it out. The only catch is that my wife is finishing up nursing school and has a job waiting for her at the hospital she works at, but until then we would not qualify for financing. At least I doubt we would, I'm waiting to hear back from my bank on what I'd qualify for. I, being a public school teacher, don't make all that much.

I had considered putting an offer in for owner financing. Or maybe even owner financing with a 2 year balloon payment for the balance in full. That'd give me time to get my wife working and have a better DTI ratio. The house was a foreclosure purchase, they did a nice rehab on it, they want 119k, it appraises for more, it'd rent for $1150. Any thoughts?