Without your help, this site doesn't grow, the knowledgebase doesn't increase, the deal making and partnership opportunities don't exist.

There are impact fees which drive up costs, etc.My strategy in today's market would be only buy the existing duplex if you can generate positive cashflow meeting your return requirements.

What is more desirable is a subject-to purchase which is subject-to the existing financing remaining in place.

You might be able to do it more quickly if you're just paying off the existing loan.

Here are the expenses (annually):PITI : $7,800 ($650 per month)Property management : $3,300 ($275 monthly)Vacancy factor: $1400 (2 unit, 1 month per year) – highly sought after areaRent loss: virtually non existent – good tenants with good creditTotal of $12,500 in expenses per year not including capital expenses$33,000 - $12,500 = $20,500 per year (minus capital expenses)This would make my expense ratio around 38%Am I forgetting anything here?

or just putting new air in existing heat unit?

Will just plan on living in each house 2 years if I do plan on selling.Plan on doing a major remodel of the existing rental, new siding , windows, add bathroom etc then split lot and build a new house along side.It looks like it is possible to do all this with owner occ money and save on gains too.Considering my depreciation is about gone and never was much anyway, finding a way to start a new basis would be helpful.

Have you worked with the existing occupants to get the credit issues resolved?

It's probably worth while sitting down with a designer of some sorts that can look at what's existing.

Perhaps the Drug Task Force folks if they exist in the area or Narcotics, not just the patrol guys...someone more interested in making a bust.