I'm buying a duplex and the seller is VERY motivated - thoughts?

There are several funky things here. Do you have a JOB that you can support the full cost of the mortgage? The worst thing here is that the renter moves out leaving you holding a clic 'flip this house' scheme. On the other hand you will only be paying 200 a month for 'rent' to own this. I am troubled by the next door duplex being in foreclosure also. What happens to you if the new owner decides to rent for 450 and your tenant moves next door? The next thing is if the property is truly worth the money you will be paying for it. Not to low ball the prior owner is commendable but just maybe he paid far too much. You do not want to be the one to be in foreclosure next. A check of comparable properties or an appraisal is necessary as well as a visit to area landlords to see where rents are is in order. Never ume that just because one person is paying rent like this that you can get it again. Nor that the value of a property is what other people have paid before. Otherwise the plan to live in one side is great while having a renter. Just make sure that you have enough income to cover the mortgage without the renter and that you have a reserve to fix the things that are going to go wrong. Like the water heater or the furnace. Good luck. edit: Be careful with the first time buyer credit. You may not be eligible with it being a rental property. another edit: It sounded like you were uming his mortgage? Don't do that without careful inspection of his current mortgage. If you are starting anew with a mortgage you probably will not qualify for any worthwhile mortgage with that low a down payment.