We both liked the Morristown area for low taxes and because of the downtown.

I have definitely bought deals from both wholesalers and a one or two agents, but a lot of the "deals" in my area are in very low end neighborhoods, which I don't buy in, though many investors in my area do.  

I haven't been investing for long but rates have gone from low 3%'s to now close to low 5%'s.Will this rising interest rate environment change anything in your business and what will you do to adapt?

Balloons are designed to give you low payments and then after the term, refi into something else.

id=1IaAr5B1WeT...Cleanup Job (Low cost fast flip): landscape package in front remove deckremove vines from house clean exterior, fix siding and wood rot, paint neutral beige/gray color clean driveway/weed, clean retaining wall/pavement replace flooring with mid grade flooring bottom level, carpet upstairs replace interior fixtures paint interior white trim, light color beige/gray walls, popcorn ceiling removal new kitchen appliancesRehab options: Replace deck with new one (kind of awkward that high to me) vs Remove and fill in wall or add large window to master.Potential space to move laundry into upstairs bathroom closet vs basement Can maybe get away with toilet/vanity replacement in each bathroomUncertain if painting or replacing cabinets with ikea type is worth itAny in-ceiling lighting will open up codes stuff with electrical since it is out of dateRepave/fix concrete front porch and side porch - replace/paint railingReplace front walkway cement, or remove walkway and replace with right angled walk to driveway (may not provide ROI)Tear down vs paint garage port in back yardWhich do you think provides highest ROI? 

Lastly, just to be good landlords, we're planning on something like a small rent reduction for this time period as an apology.

On the upside, 3.5% down means you don't have much cash in the deal, so even minimal cash flow might be an okay return if you can keep expenses low enough.For a duplex in the midwest, I'd personally want $200/door net cash flow.

Our overhead is low because we have an office located on our property, so no additional cost there.

@Mike WoodYour soft costs are really low.

The most important lesson I can take away from this is that there will be high and low times in REIA for ever.