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%?

I host a virtual investor meeting every wednesday at 7pm EST, DM me and i can send the details your way.

Keep detailed records of income, expenses, and improvements, and choose the right filing approach based on your comfort level with these rules.This post does not create a CPA-Client relationship.

Are you looking to rehab it to look like this one: https://www.realtor.com/realestateandhomes-detail/1523-Ionia...?

If possible, meet the appraiser to provide your rehab details and comps.Also, out of curiosity, when did you purchase the property and when are you looking to refinance? 

I would have contacted the locksmith tech to get additional details before assuming it was tenant damage.

Your detailed explaination will be highly appreciated and I know it’s not a legal advice 😁

Here's a bit more in detail about how rates are calculated for DSCR loans:1.

However, the investors are finding more updated, detailed information than what you provide us.

I’m concerned mine is not detailed enough.