Key is to work with a team that focuses on managing padsplits as their core business.Buy in solid neighborhoods where there is a good tenant base and put in experienced property management.Happy to connect with anyone that has questions on the model.

You told him not to pursue this, but you didn’t provide a solid reason why.

BiggerPockets groups —lots of solid resources and a supportive community here or at local REI meetups; you'll find folks willing to share tips (and maybe even some potential partners).Here are some other strategies that could also help you scale faster:Partnerships/Joint Ventures: Teaming up with others, especially experienced investors or people with capital but limited time.

So with another 100K in construction/fix up cost bringing the total to 500K it meets the 1% rule, obviously I would do more underwriting but I need to be solid on those comps. 

Its location near the planned casino positions it for continued appreciation and strong demand, making it a solid long-term investment in my portfolio.

Team Up with a Good Agent: A solid local agent can help you navigate the ins and outs of multifamily properties.

Offering $450K would leave room to cover the $50K in repairs, and since market rents support a solid increase after updates, this could boost your long-term cash flow significantly.

The 2nd floor apartment is longer so the third floor can open out onto the roof of that 3rd floor (it's very solid - I've been up there and I'm 6/2, 250).

If you’re comfortable with the tenant risk and low cash flow in exchange for a solid property in good condition with long-term appreciation potential, then proceeding could make sense, maybe you you can negotiate some concessions?  

Both deals have solid potential, but for a first property, the duplex might be a smoother entry point.