Newbie,
WOW! 350K for a 2/1 w/ 850 sqft? Are you in California?
Well looking at those numbers they are pretty big for me, mainly cuz I am a REI noob myself and I want to know I can cover the payments if all heck broke loose. I hope you are taking precautions such as that.
Anyways, analyzing the deal you are for sure taking on a MAJOR rehab. Also, are you familiar with the abatement process for those tiles? I am not, however I know that it takes licensed professionals to pry them babies up and dispose of them properly (permits, special enclosed dumpster, men in suits and gasmasks and saran wrapping the house from the inside while it is being done).
BUT if you are ready for the MAJOR rehab challenge and that the house would appraise for over $380K-$400k... I would want to know if the owner has any equity in the house and if he does, does he have to have it in cash right away. If there is no big rush for him to get cash see if he can carry back a 2nd on the property.
Well there is just a lil to think about, but this deal to me seems like a lot of work with ALOT of zeros at the end of the numbers and 'I' would rather rehab 2 or 3 $80k-$100k homes and make the same amount of profit.
Just my $0.02...