"Over-promise and under-deliver, just to bring business in the door," is that business model.The 4.875% option doesn't pay you enough to take that higher rate.So it's the D @ 4.75% option versus P#1 @ 4.625%.31 basis points for 1/8 lower in rate is a killer deal ($400 / $130k = 0.0031), always take that rate buydown.

@Steve Vaughan Well funny enough the appraiser made an error.....he did not look inside the comp that he compared this house to and if he had he would have realized that the comp was completely gutted inside....to the studs...The expenses include my loan payback amount which would be $972 in order to pay off in three years...otherwise the expenses would be closer to 1K ( including fixed & variable expenses) This house is in a C+ neighborhood.....SFH get 1000 to 1200 per month...two families get 600 to 1000 per month....so I had to change my rents to 750 per unit rather than 1000 just to be safe.....these units are larger than most and there are a lot of very large closets in each unit.....each unit also has 2 beds, 1 bath and kitchen and dining area.....The kitchens are sizeable too....killer basement and new 2 car garage....private fenced in yard in the back.....Still a good deal.....if I want to pay off the loan in 3 years then it would put me in the negative for the first few years....Thanks for sharing!

But my excitement quickly turned to horror as: Unknown property conditions of 2 occupied unitsOlder, possibly original, electrical wiring that needed updating immediately (vacant unit had 1 electric outlet per room)Seller is deceased, estate now held by sister who lives in New York, who has never visited buildingPossible water/roof damage as warping and thick cracks appeared in stairwells/wallsOlder, leaking windows Questionable plumbingBIGGEST DEAL KILLER: EXPOSED ASBESTOS WRAPPED AROUND ALL PIPES IN BASEMENT!!!!

I love the idea of renting part of the time out to cover all your costs and then still getting a killer vacation for your own family out of it.

For instance the rate for 30 year mortgage for primary residence borrower is at 4.6% ish...last time I check, as investors you would probably be at 5.5% unless you have killer credit or higher down like you're doing.

Not sure how hot your market is but 'round here "inspection contingencies" are deal killers on potential high profit 1-4 unit investment properties.

The heating costs in the winter as you know can be a killer on a rental property.

It might be best to sell and be liquid until a correction or killer deals uncover 

HOA are usually the deal killers on numbers.Alex

He also killed parts of the lawn with weed and grass killer.