Basicaly your saying  put more in at a lower rate of return and then gamble on appreciation??  

As far as risks, I'd rather take the 10 years of certain cash flow with moderate appreciation over gambling on equity increases.

No, because a) that might be their luxury/vice item for all I know, which is 100% fine if it's viewed as a luxury item that they just really personally enjoy and gain happiness from (it's much less harmful than other vices, like drugs or gambling!)

It's a little bit of a gamble for both of you, but I think a fair one. 

Hopefully during that time the house appreciates (always a gamble and never guaranteed). 

You can have a cash-flowing property that has a loss for tax purposes, primarily due to the effects of depreciation (a non-cash expense).If you have a negative cash flowing property, then your only financial benefit as an investor is the gamble on property appreciation.

I know I’m ignoring any appreciation, but I hear over and over again not to count on appreciation because that’s a gamble.

It could appreciate but I consider that gambling.

You'll have guys gambling on the side court and people possibly getting shot over a game or down😳.

Could also use removal of vinyl siding and painting but that's always a gamble since we never know what we'll find under the vinyl.So as you can see, it's not a great deal, but it's a free duplex with the financing (albeit not great) in place.