If you want a true duplex, you'd also need to make sure zoning would allow it vs adding a legal suite.Why not just buy an existing duplex?

They'd be taking over an 80k loan and buying the property for 125k. 

A lot of the conversations I had with the realtors that showed it had the same feedback, that for the PITI payment on this property, their clients could probably buy and new build and still pay the same thing (The house was situated rather close to a couple of new build communities).

Hello,How do you build the self-confidence to approach a property owner about buying their property?

Or if there were extra cleaning fees, add that in.  

The Bay Area will take more capital energy and buying in the Midwest will take more time energy. 

Sometimes, having a reliable tenant stick around long-term is more valuable than pushing for an extra $100 a month.

If I buy a property with tenant in place, do I need to inherit the existing lease terms?

If you boost leverage to 75% the cash in your pocket is even greater and the returns get boosted again.Now go forward in time a few years and you can do a few things you can never do with a stock:If the property has appreciated, take out another loan and put more money in your pocket.Or, you could sell the property you can use 1031 exchange to buy a much bigger property, reset the depreciation clock and pay no income taxes at that time. 

On the other hand, you probably can't buy something else and get the same return.