Again, those markets are red hot but the growth is so strong that it's still very appealing.

The space is small about 900 square feet, they pay their own electric/ heat.  

I saw who the owner was and knew he owned a LOT of properties so selling one seemed like a red flag given the property.  

My plan was simple: Get pre-approved and get a private hopefully low interest loan for the down-payment and closing costs.Get the $195,000 property at a lower price point and go through all the red tape since it needs to be fixed and it is a very good price for a two family.

Ok, everyone...feeling a little like the guy being stoned to death in the town square. 

Square footage and bed/bath count does play a direct factor when it comes to value.

One person may like red when the next person does not. 

Additionally, when you adjust for square footage, that changes it to $222K.Housing is frothy, which is exactly why higher interest rates are a good thing.

S/F houses with the same square footage and no basement are going for $165,000.

He drew me a picture with little houses on each one it had how much we would buy them for, how much we would put into them, how much we could sell them for and he would circle in red what our profit would be and how it can add up.