Who's to say it's not actually $475k fair market value and he's just buy'in a load of horned-cow-frisbee's. 

It really depends on which of the drivers of each segment of rentals is more present with your condo, and which segment has the best blue ocean dynamic present.For example, if you are near a regional hospital and everyone is goo-goo-gah-gah over STRs in the area, mid-term is likely your cash cow. 

Of course, each advantage comes with potential drawbacks as well.In order to make your first investment property as profitable as possible be sure to:Accurately calculate repairs and ownership costs, property values, and fair market rentsFocus on cash flow first and appreciation second, unless you’re investing in ‘cash cow’ rental real estateUnderstand that ongoing ownership costs include not just your mortgage, but also expenses such as leasing and property management, recurring repairs and landscaping, and property and rental taxesAvoid getting emotional – when you’re buying your own home, it’s alright to care about things like paint color and carpeting, but always remember that investment real estate is strictly a numbers gameRemember that turnkey single-family houses and small multifamily property are already rented to qualified tenants, so your cash begins flowing the day you close escrow.Good Luck!

Investment Info:

Large multi-family (5+ units) buy & hold investment.

Purchase price: $105,000

Cash invested: $10,500

6 unit multifamily property purchased, 3 one bed, 3 studio apartments

Nobody here sells their duplexes, because they're cash cows.

So here is my first deal, not an amazing cash cow, or super screaming deal but I see it as a good deal for my long term goals.

There will be other deals that will be much easier to digest.

It has been a cash cow ever since.

Holy cow.

I will try to break the scenario down piece by piece for ease of digestion.