@Denise MunozI almost stopped reading when I saw it wasn't,  the 1% rule.......If they are selling for $84,500....the gross rent needs to be $845/mo minimum.....Check the real comps for the area....as opposed to what may be on Zillow and see if you can get them to lower the price.......If you inherit long term tenants there and you try to immediately raise their rents by 12 to 13% then you have a decent likelihood of making them become bad tenants.  

Often a PM is able to get higher rents and lower vacancy, evening out their cost anyway. 

Austin’s lack of housing choices disadvantages first-time homebuyers, families with children, and middle and lower-income buyers.

Perhaps it's a lower base salary, but you're able to earn commissions?

-"market rents" are lower than CHA/HUD (section 8) rents, is the building approved for section 8?

Shawn Faris sorry for the delayed response...I am looking at a conventional loan with a down of 10-20% but on the lower end of housing prices(30-50).

I'm looking to do a 1031 exchange on my owner occupied duplex in Los Angeles, where the upper unit was my personal residence for more than three years and the lower unit has been used as a long term and short term rental.

And if so, would you prefer to put in the time to negotiate those lower prices yourself, or pay the wholesaler for their time?

So in all cases but one the spread is greater than 3%, and in that case (using higher-interest bridge debt) we plan to refinance into lower cost debt by year 3 which will then create a spread in excess of 3%.Unfortunately buying commercial income property (includes multifamily) requires very sophisticated financial analysis and there are no shortcuts or rules of thumb that will give you the complete picture. 

It's up to your comfort level and goals but, why not look to refinance and get a lower monthly payment and use the $60K+ to possibly invest into other real estate?