I have the inspection report that shows some areas that indicated moister and it was covered up by paint, but this wasn't even the worst spots.

50% rule or not, when you're getting $950 a month in rents against a $34K investment, you should be printing money.Maybe the cash flow ends up being lower than higher for the next four years, but if you just set aside about $80 a month, you'll have that balloon paid off when it's due, and you'll own that thing free and clear.Looks like a sweet deal to me.I assume from your email address that you like duplexes.

They seem eager to rent, filled out the application on the spot and turned in application fee.

I would stay away from HOA's as any time you put money into someone elses pocket there is an opportunity for power trips and greed to take the money and run leaving the residents in a tight spot.

I was sitting at the house looking at the forums here. then looked at yesterdays paper,, and it had an ad for a very cheap fixer upper in valley al, for only 5,500,, not far from my house, so out of curiosity i went to look at the house, when i got there the house had major water damage from a leaky roof that would cost 20,000 just to fix it, well by chance the guy who posted the ad was the rightful owner,( who was already there when i arrived ) I easily talked him down to 1,000 bucks and he agreed, well i was short on cash so i pawned my car title for a 1,000,,ok lets buy it, I signed the paper work in the front yard and settled the deal,deed and all on the spot!!

SWEET!!

Once a cat pees on a spot....every animal thereafter will want to do the same thing and, if it gets to the subfloor, you'll never get the smell out.  

(Surf BiggerPockets, write down questions I have and research them on the web, read credible and updated books by successful investors, join local real estate communities or groups, attend seminars, find a mentor, etc.)Learn how to read the market, how to choose the best location, how to spot a good deal and a bad deal, how to find contractors, building inspectors, find out more things I need to learn!

In that case, you might be in a tough spot.

I'm not saying that I'd necessarily buy either and I don't own either, but that is what I saw when looking into it.You are both also spot on IMO to be highly skeptical of Universal Life Insurance as well as the $2k "refundable" retainer fee.