With 44K owed you seem to be generous in giving her anything more than the balloon payment and moving money. And that would be prepaid rent. Carpet, paint etc. are likely to run several thousand. You could get part of your cost as option consideration. This price house it is harder to get a solid tenant that will stay a year or end up qualifying for a loan.
What I would want to know is can the 2nd be purchased at a discount. With a balloon it sounds like a private second.
Thought that Id try to poke some more info out of you all…I found what seems to be a good motivated seller… numbers first, I dont think that this place would be a good house to flip…because the FMV is 53k, the divorced (dead beat husband broke) woman owes 18k on orginal non assumable and 26k on second morgage…so theres nothing in equity…Plus no room for the person that Id be flipping to, to make anything… the house is currently occupied,(by her) meaning that there will need only minor repair (rugs , paint wall, etc.) and there is a ballon payment of 1300 comming up in a couple of months…(which she says that she doesn’t have the money for)… Let me know if you think that this will work… I write a contract to lease the house for the next 12 months at X dollars(as close to her payments as posible) with 3000 down (covering her ballon, etc) agree to pay for damages to the house not to exceede 100/month … then after the 12 months buy the house for 38-44k …I go out and advertise the house to RENT TO OWN … same deal to them I carry 12 months X dollars+ pocket change… 49-52 in a year bla bla bla… get the Idea…
PS I think I read this some where… give some input