On the surface, the deal seems appealing, but there's a catch: the asking price is $475,000, which is about 18% over the market value (based on comps and DealCheck estimates around $402,000).Details of the DealProperty: Duplex, 2,400 sq. ft., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?

Hey Jon would recommend checking out FB groups if you aren't local (looks like you're based in the Bay).

Dont know where to start any suggestions will be great thank you For the 300k property they are probably not going to let you pull any money out based on the amount of credit you already owe.

If a single-family owner-occupied property is worth $400,000 - I wouldn't invest more than $280,000 (70%) in a note secured by the property.ITV takes priority over desired yield - so even if the note discounts to $350,000 based on desired yield, the investor still won't go beyond their maximum ITV. 

Real estate is not my of my knowledge base at all but I want to start working on building passive income now (I’m 44). 

The drop and Swap is about all we use here due to the confiscatory tax rates based on sale price.

Many times the tenants are income based and pay 20-40% wherein only 60-80% may be guaranteed.Aside from the rent percentage issue is pride of ownership.

•Our company has proprietary AI models designed to accurately assess listing quality through images, which would power this feature.2.Smart Weighting:•Automatically weigh comps based on their reliability.

Also looking to build a solid Long Island based team (Agent, contractor, lender).

I am based in Edmonton, Alberta.