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%?

Not to mention, they weren’t aware of my entity information and other organizational details I’d previously sent (ie state formation, scope of work, etc.); easy stuff.

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? 

Quote from @Chris Clarkson: Initially I’m wanting to start in the local Chattanooga/North Georgia areaWould you be interested in something like this: https://www.realtor.com/realestateandhomes-detail/3621-Missi...?

Sit down and hash out every detail and put it in writing.

I will reach out and ask more about the details of the situation to better understand what went on.

I just set up my vrbo account and still some finer details about planning the communication, cleaning service, maintenance persons, etc…

If you can post more of the details I’d love to give my advice!

STRs also avoid automatic classification as passive if rented for seven days or fewer per tenant.To maximize tax benefits, maintain detailed logs of all hours worked on activities like tenant communication, cleaning, maintenance, and marketing.

Thank you @Samuel Coronado for all the great detailed info!