The interest rate on my first mortgage was in the high teens, we survived and the property today is long paid off and worth more than double its original purchase price.The U.S.A. and Canada have experience cheap money over the past decade which has contributed to an increase in real estate prices:  So what if you pay an extra 40K to get that duplex, the interest rate is only 2.5% (up here anyway) ... it's only another $180/month.There are a lot of folks who have been buying property with the implied premise that the Prime rate would remain below 4% when the historical norm has been somewhat higher.  

Thing is, nobody wants them, so they're cheap.

I was hoping it's a mess because I'm trying to get cheap all I have to do is replace the tub, put up a door and paint.

Ive lived in DC and Boston, both very high cost of living areas, and both have properties that are very very cheap...as Im sure does the bay area.

There were plenty of deals to be had since there were tons coming on the market that were dirt cheap IMHO.

I do have 100k equity in my current home so if things go sour I can sell my current home and pay off the cheap one.

There is plenty of cash-flow and I know there will be expenses like this, I'm probably just being cheap. :)  Thanks again and good luck to you all!

If you partner with a guy, he gets paid more for finding cheap solutions...Guess which jobs go smoother.

Especially early on, you will need this expert help, and it's a fairly cheap price at perhaps 6% since you'll likely have to pay money anyway to get it on the MLS.Best of luck!

Even FEMA says over 20% of flood damage occurs outside of the mandatory flood zones, but I don't expect them to actually come up with a common sense fix, so I'm just avoiding future flood zone properties unless it's cheap enough to take the risk.