If the property & loan is small the cost to collect on an unpaid debt is a much higher % of the total debt.

For instance if you need more time for due diligence or Settlement deadline you can do an extension in an addendum.  

@Nicolas Da SilvaTell us the cash flow with the debt service and without, and then what the cash flow would be with the PMI.BTW, you called this a legal duplex, but did not call it a legal non-conforming triplex.

They will respect you and you’re doing them a favor by them not going into debt.

Other than a response of knowing what your comfortable debt level is, how do you decide how much debt to put on a rental property, if any at all?

Currently I do not want to buy a new car and have a new debt to pay off, however I have had trouble with getting really bad used cars.

We have about 78K in CC/personal loan debt.

Gross Potential Income(-) Vacancy, Bad Debt, Concessions(-) Non Revenue such as model or employee units= Net Rental Revenue(+) Other Income such as utility incomeYou need to net out vacancy before calculating what the utility income will be since it is tied to occupancy and usage.

We will use some of the profit to pay down bad debt and the rest we will save for investing next year.

You should see if the seller will lower the price.....THEN when you close on it see if you can raise rents.Just because it was built in 1989 you never should "skip over" fees such asProp Mgmtvacancy  (Yes it is occupied now but it won't always be)insurancerepairscapexof course debt service (mortgage)lawncare, cleaning and maintenance (Different from repairs)trashDo your tenants pay for water and sewer?