As a first time duplex looker, I see lots of duplexes in rent control areas for sale (eg in Oakland).I did the math on what current residents in the area pay and see little to no way to get a return on these investments.Am I missing something?

This puts it not far off where you are coming in for renovation costs.Keep in mind I am being very basic with my math here, and can only speak from one flip.

the fewer the properties, the less properties you have cash flowing that can cover a property that has a financial hit".I thought the same thing but as you can see in my math, that isnt the case.  

This requires slightly more math and evaluation than what the rules teach us.  

are there any downfalls to this, because from my math it would give me an extra $300 in cash flow per month. 

I have a lot of people in my life that will be able to help and guide me, but I wanted to come to you guys first and to my homework before I use the time of my local investors who are running their own business.Thanks for your input!

If not your interest in the deal may cost you more than you make in carrying or holding costs.I think you got a lot more homework to do before jumping into this venture.

@Gabriel Ayala - Do your homework!

You, perhaps rightly, can beat up on him for bad timing but we all make decisions based on the information in front of us and no one (that I know) has perfect crystal ball.Now lets bring in the financing issue; Assuming the buyer has arranged some financing (without doing the math, I don't think a 3 CAP can carry even at current interest rates).

The deals tend to be smaller (less equity) but the response rate tends to be better. 5) Do the math backwards.