Yes it is small at $10k in debt.  

I absolutely would not allow post possession occupancy in this situation.  

Crude analysis:50/50Monthly rents $3,34050% to expenses, 50% available for debt service: $1,670 Debt service $611 (An estimate of trulia of 83.2k @ 4.125 amortized over 30)Cash flow: $1,059 ~ Annual, $12,7081% Rule: Purchase price (all in) 104k, monthly rents, $3,300 = 3.1%And now, sorry this will get a bit longer, a slightly more detailed form (the best I can do at this point):Gross monthly income: $3,340Monthly Expenses:Vacancy @ 8.3% (local property manager though this was accurate) = 277.22Water & Sewer = $102Management @ 10% (although I'll do it for the foreseeable future) = $334Garbage?

Crude analysis:50/50Monthly rents $3,34050% to expenses, 50% available for debt service: $1,670 Debt service $611 (An estimate of trulia of 83.2k @ 4.125 amortized over 30)Cash flow: $1,059 ~ Annual, $12,7081% Rule: Purchase price (all in) 104k, monthly rents, $3,300 = 3.1%And now, sorry this will get a bit longer, a slightly more detailed form (the best I can do at this point):Gross monthly income: $3,340Monthly Expenses:Vacancy @ 8.3% (local property manager though this was accurate) = 277.22Water & Sewer = $102Management @ 10% (although I'll do it for the foreseeable future) = $334Garbage?

After you determined the property to be a good investment you will want to then calculate the Debt Service Coverage Ratio (DSCR).

Saving you about $150/month and you will still be mortgage debt free on or before your original schedule.

Details:$175k, 8 units, built 1966, $450 each unit rentassume 10% vacancy, 55% expenses, 4% interest rate, 25% down.Before raising the rents (basecase), I get 1.85% monthly rent to purchase price (2% rule)2.33 debt coverage ratio, 10 CAP, 21% cash on cash.All in all, not too bad.  

He owns a large portfolio of SFH and is completely debt free - that is his claim to fame.

My issue is that the duplex consistently rented and making money, but my maxed out credit cards are killing my debt to income ratio.

When looking at structuring a deal with or without debt, tax impacts will largely hinge on the amortization of loan costs and interest expense.