However when the market picks back up in 3-4 years, interest rates drop, and rent goes up, it'll cashflow very well along with tremendous equity build.With my proposal, the seller would hold 2nd lien on the property and receive payments on a 5 yr balloon.

I then hired a new boutique PM who brought the price back up and had it rented out to fantastic tenants in less than 2 weeks during the winter months which was one of the worst times to get renters here in the Midwest. 

@Mark Frattini That was more or less my backup plan if the duplex idea didn't pan out. 

I believe that if the Fed sees price deflation, they'll fire the money printer right back up and drop interest rates once again.

The decrease in cash flow would only occur if we had to use it as a long term rental as a back up plan - but I keep telling myself that would only be for the short term as the area is much more desirable.  

We bought round June of 2020(right as Florida started to open back up) . 2021 was our first full year doing it and we are happy with the results (we did use it for about 2 months, so we did not make a profit, but we expect to make one this year).

Make sure and inspect their rent rolls and records that backup what they put in their T12.So you don't have a financing option yet? 

Maybe the burner needs replacing - you'll know when a tenant tells you no hot water. 

If you can GET a deal with financing, you are absolutely right- the rate of return and benefits are definitely worth it- and having a HELOC as a back up is always wise for when you don't have cash.

I think my interest is at 5.25% ((if i took the loan)) but again it builds itself back up so I am all for it.