If they don't do it for 2 years, then you're at break even if all your assumptions are correct. 

You have a more country property, people make assumptions on what they can do.

Also, I think the capex assumption may be too high given that you sunk $50K into rehab.

The majority of the time when neighbors find out, they call me and spend my time (and my client's money) addressing what are their incorrect assumptions like I need their approval to touch their driveway.

Hi Adam.I cannot speak to the Dayton-specific short term rental requirements, but I can tell you they are fairly stringent and complex in my market, Nashville, so I would highly recommend a local realtor or property manager who can explain to you all the legal and financial requirements.In terms of overall deal analysis, I would keep in mind that IF you can successfully implement the duplex as an Airbnb on both sides (again, check with local experts on this feasibility), future purchasers are more likely to treat the property more akin to a commercial property in terms of valuation than a residential one.As such, definitely utilize a knowledgeable local resource to see if $200k is a reasonable price; however, assuming that is fair, I know many investors would be interested in the future-outlook of the deal if the assumptions you referenced above are accurate:Purchase price of $200k with gross annual rent (conservatively) of $38,400 (80% of the lower end estimate of the current AirBnb unit) * 2 for both sides, * 12 for the year.

What assumption do you make for cap rate when you are underwriting these days considering we are heading into recession?

Still I would look were you can get the most return on your money today with the assumption that you can always do those improvements down the road. 

I've contacted the lender to request a simple assumption of the loan as interest rate is very low, but that's unlikely.The home is in WV and pay off amount is 116k and value is 200k.I have the cash to pay off the loan. 

They haven't suggested that, but that sounds like a better place to start.)And yes, I'll be talking with them, and clear up all the assumptions, but want to go into the conversation knowing what is normal and expected from others who use Property Managers. 

This is obviously frought with assumptions...