The whole idea is to get in "light" - with as little cash out as possible.Purchase price: $80Kdownpayment: 20% ($16K)seller gives you $30K rehab creditCash at closing: $14KOwner 1st mortgage: $64K, interest only, 8% ($426.67/mo)Maybe negotiate to refi in 2 years or 1 year with a one time extension of 12 months with a 1-year advance on mortgage payment ($5,120).With that mortgage payment, and if you can indeed rent both units at $825/mo or $1650/mo total, you will cashflow from the deal even with the 50% rule.I would suggest though that you put the deed in escrow to be sure the owner does not walk out on you and get your downpayment and a renovated property at your expense.

A home inspection will find foundation problems, extensive roof damage, and mold.

I like cozy.co for collecting applications (I have no affiliation, just use it).

After the transfer, the Department of Finance discovers the mistake and seeks to collect the back taxes from the current owner. 

I would obviously want to keep this property as well and collect the cash flow each month.

Collect rent and file taxes appropriately. 

Collect rent and file taxes appropriately.

I have not had problems collecting payments. 

After all expenses, collect the $200 cash flow and put it in our savings account. $200 a month, multiplied by 12 months = $2,400 $2,400 multiplied by 4 years = $9,600We can use the $9,600 to buy another duplex once she graduates and makes income again.The goal is to use duplex income to pay off all of her student loans.Our deal analysis is just like how BP teaches:Cash flow has to be >$200 a unit after ALL expenses and Cash on Cash return has to be >12%Expenses-Principal & Interest-Property Taxes-PMI-Home Insurance-Water/Sewer-Garbage-Vacancy 5%-12%-Repairs & Maintenance 5%-10%-Capital Expenditures 5%-1-%-Management fees 0% (I will manage all of our properties now & moving forward)We are 3 weeks in on the Duplex search in New Haven we are learning QUICK that cash flow and a FHA loan do NOT get along.

You can "go big" by investing in these deals and just collect mailbox money without doing any work.