Help Needed-- I need help analyzing an offer...please
So this is my first deal, I don't have a mentor(trying, but haven't found one) my family nor friends are real estate investors, so I don't know who better to run this by than BP nation. So the home in question is an older house(built pre 1920) with a good looking foundation. It's 2 bed, 1 bath only 700 sq ft. It currently has a section 8 renter paying $610, which can be increased 3% annually. City assessed value is around $50k(which I feel is kind of high, Zestimate $47k), original asking price $45k, after going back and forth, final offer is $41,500. Taxes are about $1,200 and insurance around $500. The negatives: the 2% rule is definitely broken and ratio that the banks use for funding would require about $10k down to get financing. The positives: the house in a decent neighborhood with homes in the $60k-$80k range(but this house is much smaller at only 700 sq ft- maybe get it to $60k with putting in $5k-$10k) and the fact the rent is pretty much guaranteed since the it's a section 8 renter. I feel like the fact the rent is kind of guaranteed is swaying me more than it should or is it really a great plus? The tenant did say he never wants to leave too. lol... So with that said any advice would greatly be appreciated!! Thank you Thank you!!