I was surprised he put $750K down on the two, selling price $1.1 million combined, about 10 years ago.

Here is some info on the product: Product Overview Combines home purchase or refinance (limited cash out) with home improvement financing in one loan with one closingProvides a convenient way for borrowers to make renovations, repairs, or improvements totaling up to 75% of the "as-completed" appraised value of the property with a first mortgage, rather than a second mortgage, HELOC, or other more costly financing method.Funds can be used for repairs or renovations that are permanently affixed and add value to the property.

@Andrew Zbrzezny depending on which lender you go with your ARV is going to be based on a combination of market comps, and income or one or the other.I have seen some banks just do an income based evaluation and some just do market comps. 

I have since retired and my properties provide a nice cash flow retirement.Realistically, if you spend 250k or either a duplex vs SFH, your combined rents on the duplex will be better.  

Regarding you expenses:Missing CapEx, 15% total combined w/ Repairs.Vacancy might be a bit low (I figure 8%), but this is super local.Water/sewer looks high. $40/unit/month is usually good.

But it sounds like a combination of things could work

They are largely deceptive and misinformed...this is a volatile and unhealthy combination.

@Mark Eichenlaub I'd like to take a stab at answering your quistions... for the past 3 years my W2 has been a combination of managing a 700k sq. ft. portfolio of Class A commercial office space, industrial, retail and more specifically, right now 30 credit union locations. 

I live 25 minutes from an area with an extremely hot rental market combined with a housing shortage.  

@Jose Lopez:Repairs and CapEx are way too low. 15% combined is pretty safe.You're forgetting management (10%).Water/sewer is usually paid by the owner of a 4plex.Any other house utilities, like electric for common areas?