We bought it at a 7+ cap so sale price was essentially price adjusted for the assumption.I would run two scenarios get the actually yield maintenance $ amount and add it to the purchase price and see what your model looks like after placing new debt and what your model looks like if the lender will give you a supplemental.What's your exit strategy and timeline?

The owners split the house in two while enclosing the garage to create a 3/1 and 2/1, in addition they enclosed a back patio area to make an efficiency studio area 1/1 no kitchen. 

There are some additional discounts for having auto insurance with the same company but I didn't include those.What does the HOA cover?

After taxes, that is 52k per year in CA, which means you need to save an additional 20k annually over the 70 you have.Living off 32k in Santa Barbara sounds improbable.

(Addition, Renovations,  etc.). 

Should you convert the attached 1-car garage into additional living space?

We are going to apply for a small business loan to open the LLC and for any additional start-up costs. 

Additionally, this property is close to the airport so there is a lot of potential to turn it into an airbnb hub, leading to more cashflow and of course, more management/cleaning time.Long story short, would you take a deal with these parameters:- Asking price $165,000 (pre-MLS price) - Duplex consists of: 1 bedroom main floor and basement unit & 1 bedroom upstairs unit- Total rent: $1600/month (tenants pay utilities)Addendum: I just bought my first property with 11% down (before I found BP), so any suggestions (or links to forum posts/blog posts/podcasts) on creative ways to finance this deal, please let me know.Thanks BP community.

When you say that refinancing limits your ability to write off interest, do you mean that you won't be able to write off the additional interest increases or do you mean that it will also hinder the previous amounts as well?

I really hope there are valuable informations u can take away from this post, anyway lets get started.