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%?

The problem is ...

In some older neighborhoods especially historic districts, the tenants look for older houses - they preferred the art deco bathroom tiles, the thick plaster & lath walls over granite countertops and stainless steel appliances.but class D neighborhoods are easiest to tell. 

Quote from @Aaron Wolman: General question, I am turning over my first rental and I got the charges from my contractor on damage done and I want to see peoples opinion. 

The Seller has 3 choices; Accept, Reject, or Counter. 

I was thinking that the very thin hard carpet could serve as a sound insulation layer, and just installing click together LVP right over the thin carpet and the thin hard stick on tiles. 

Anyone that has sold items privately would have countered any offer. 

Quote from @Dennis McNeely: In a sandwich lease option, the investor exercises their option with the property owner to purchase the property when the tenant-buyer indicates they're ready to exercise their option and purchases the property.

You just have to be careful because some sales agents will just advise you to over improve the property because it makes their job easier.

My suggestion would be to cap your utilities at a certain amount and have Tenants pay anything over that amount.That will help you manage your expenses, and also allow Tenants to gage their usage each month, and make adjustments if they don't want to go over the allotted amount.As far as collection, provide the bill showing any overages and just have them pay for it along with their rent.