Hi i am new to investing and im reaching out for help analyzing a deal im looking into, it would be my first deal if i don't count the home i live on and i would use down money from a heloc on my home... here's the details: its two separate houses, one is $32000  1800sq ft 4 bed 2 bath currently has a $550 rental income tenant and theyre both appraised at $39500. the other is being sold for $29995 its 1212 sq ft appraised at $39500 also and has a 475 rental income they are in a neighborhood were homes around it have sold for around $70000... i would maybe use a fha loan at around 5% interest and i would also get a heloc on my first home to cover the down money... they need basic interior renovations but have newer hvac and roofs any feedback is appreciated thanks

You basically have enough money if you decided to do real estate investing full time to do that.

What am I missing in the assessment that would change the numbers and in turn, change an investment decision? 

Now our tactics are very simple; basic due diligence, driving around, etc.

I agree with Russell Brazil if you want to become an investor friendly agent, you should set some basic principles.You don't want to end up just writing very low ball offers 24/7 and get nothing done which you will see there are a lot of people just trying to hit jackpot.Knowing the marketUnderstanding your buyerUnderstanding the numbers/ analysis are the key.Good Luck!!!

I popped in this morning and that's basically the answer that i got.

Basically, the IRS wants to ensure that you invest an equal or greater amount of EQUITY AND RELIEVED DEBT in the replacement property.

That's been my assessment as well, just want to make sure I'm on the right path.

Having then paid them off, I'm left with the Bank's mortgage and hopefully some cash left over to Repeat.Is this the proper use of this method, in its basic form?

Our basic goal is to build a portfolio of positive cash flowing multi family properties in up and coming neighborhoods around the city.