On the surface, the deal seems appealing, but there's a catch: the asking price is $475,000, which is about 18% over the market value (based on comps and DealCheck estimates around $402,000).Details of the DealProperty: Duplex, 2,400 sq. ft., Purchase Price: $475,000 ($197.9/sq. ft.).Estimated Market Value: $402,000 ($168/sq. ft.).Financing Terms: 2% interest rate, with a 9-year balloon.Unit B Income: $2,049/month (Section 8 tenant through November 2025).Unit A Income Potential: Similar rent or higher; Section 8 cap for the area is $3,234/month.Monthly Loan Payment (P+I): $1,386.Cash Flow Breakdown (if both units are rented at $2,049/month):Gross Rent: $4,098/month.Vacancy (10%): $410/month.Operating Expenses (37.3%): $1,376/month.Net Cash Flow: $943/month.Key QuestionsWould you be comfortable paying an 18% premium for financing at 2%, especially in a market where current mortgage rates are closer to 7%?

The home was built in 2006, great neighborhood, close to the highways, close to everything new that is being built, close to a military base.

When an individual landlord prices their rental, they do based on what the other ones in the neighborhood have rented for. 

If it’s a good deal based on the comps, and in a good location, then I’d look into a conventional loan and maybe putting a little more down so that it cash flows.

I want to be able to find potential markets/listings nationally based on the return.

It will only appraise based on comps of similar residential properties.

Based on some of the research done, I am inclined towards starting out with a small multi family investment property (2-4 multi family home).

The already-constructed home is one point on the base of the triangle, and the other plots comprise the rest.

Typically, the tax is based on the assessed fair market value of the property at the time of the transfer, even if it’s not a traditional sale.

Hey Jon would recommend checking out FB groups if you aren't local (looks like you're based in the Bay).