Due to current interest rates, many CAP rates are much lower than they should be and usually there is only so much price discount a non-delinquent seller will be able or willing to offer.

While @Phillip Austin mentioned Raleigh is a higher returns its just very much a appreciation market, you will not find rentals that cashflow, so depending on your goals its a good or bad market.

You need to take a look at your financial situation.

Yes, it's true that you might be able to find a product you need at a greater discount when a brand like Wayfair or CB2 is having a sale, but I've found that they truly do offer superior discounts at scale, even considering the fee. 

I don't know if I'm getting much appreciation on a duplex unless the rents are significantly increased.

Cities with slow or negative population growth you should be much more picky on cashflow. 

She said that if I pay $42,000 for the next 18 months, that she guarantees I will at least get this 42,000 back by the end of 18 months but probably much more. 

Quote from @Michael Challenger: I have no qualms with hard money lending, but I need to learn more about the process and structure to these for typical deals so that I am more comfortable and in a position to reduce my personal risk and risk to investors as much as possible.

How much is the rehab going to cost, what's the ARV going to be, and how much will the property rent for?

I use to rent to Section 8 in Philly but the program started to be too much of a headache.