Mortgage on Property, please help with calculation!

[Janice Delantes]

Hi everyone! I need help with the lead I have. Owner has mortgage and still owe $40,000 and asking for $48K. It’s a remodeled house 3/1. ARV $53K. I don’t think numbers makes sense. It’s a rental property with monthly rent of $550, there’s a tenant currently. Owner is a motivated seller. Please help with calculation. I would greatly appreciate it. Thank you and happy investing! Janice

[Jason D.]

@Janice Delantes if the mortgage is $311 and the rent is $550, it's a no go for me. Theres no way to squeeze taxes, insurance, and reserves into the remaining $240 and make it worth while. Rent would have to be $750 or better for it to be worth digging into