Investing is numbers game and calculations, in my opinion, are the main factor when I decide on a purchase price.I only have single families but hope my advice helps.

We are definitely looking forward to redeveloping this house into a beautiful home.

My borrower did a beautiful fix and flip in Baltimore City - got a contract where the buyer is getting a VA loan.

I personally couldn't give you advice on whether those numbers appeal to me because I'd have to know alot more but if its that much cash for that little equity you have to factor in the bank will likely require they sign so you are asking for cash and recourse.

Did you factor in their move in costs?

My personal opinion would be to work the numbers starting with the rent, factor in your expenses, and determine your operating expenses.  

I never thought I'd have to factor in the potential of a NEIGHBOR being the problem instead of a tenant, but I guess that's the beauty of landlording.  

Also, I would have to factor PMI? 

There are beautiful laminte choices.

Here are the details: Duplex built in 1999Target Purchase Price: $392,000Unit 1: 4 bedroom 1.5 bath rents for $2100/monthUnit 2: 3 bedroom 1.5 rents for $1900/month (we would occupy this side)Total monthly income: $4000Expenses:Principle + Interest: $1950Insurance: $100Mortgage insurance: $253Taxes: $720Vacancy (5%): 200Maintenance/repairs: $330 (1% home value/year)Cap Ex (5%): $200Tenant responsible for utilitiesTotal expenses: $3753 (this does not factor in property management as we will be owner occupying, however if I factor in property management at 9%, it would add $360 which would be negative cash flow).Total cash flow $257CAP rate: 6.4%Cash on Cash return: 9%Without property management we should have positive cash flow, given that I am estimated expenses correctly.