The exuberance is purely rational.

I would tell them that if they ask for pro-ration.

The tenants are basically trapped in their apartment because if they leave which any rational person would that is paying market rates would do they will have a drastic increase in rent.  

In that period of time you can appreciate the behavior of the market after pandemic and make a rational decision.

My lender said that buying a duplex is not an issue at all with a FHA loan, but he was worried that the seller is giving a pro ration of the rent & the security deposit back as an incentive to buy.

@Suvir B.As per usual, you provide thoughtful rational analysis.I can’t disagree with any of your assessments. 

It's up to you to make that determination given your situation, market, and long term goals/cash flow needs but thought I'd share a perspective and some metrics I don't see shared as often on this site....or, instead of rationalizing a bad deal, look at it this way.He's paying $60k in cash, for $4000/year, for 15 years. 

I know he meant well.I want a watch dog on my team, but I want that watch dog to be supportive of my rational, educated choice to move into REI.

Rarely does the government make decisions that are rational.

Fear is a perfectly natural emotional reaction to anything New and Big and Important and comes with Risk.Give your rational mind some exercise.