I was surprised he put $750K down on the two, selling price $1.1 million combined, about 10 years ago.

Here is some info on the product: Product Overview Combines home purchase or refinance (limited cash out) with home improvement financing in one loan with one closingProvides a convenient way for borrowers to make renovations, repairs, or improvements totaling up to 75% of the "as-completed" appraised value of the property with a first mortgage, rather than a second mortgage, HELOC, or other more costly financing method.Funds can be used for repairs or renovations that are permanently affixed and add value to the property.

@Andrew Zbrzezny depending on which lender you go with your ARV is going to be based on a combination of market comps, and income or one or the other.I have seen some banks just do an income based evaluation and some just do market comps. 

I have since retired and my properties provide a nice cash flow retirement.Realistically, if you spend 250k or either a duplex vs SFH, your combined rents on the duplex will be better.  

Not an electrician...but I know a few and have done this sort of thing myself.The comments made prior about non-grounded systems are spot on - if the system wiring is not grounded, your three prong is for looks (and convenience) only.It doesn't make sense that they would not have hooked up the ground if the system was grounded...but then again, people do crap that doesn't make sense all the time.

Regarding you expenses:Missing CapEx, 15% total combined w/ Repairs.Vacancy might be a bit low (I figure 8%), but this is super local.Water/sewer looks high. $40/unit/month is usually good.

Remember, YOU are the one that's ahead of the game jumping in at your age and YOU are the one that is going to be likely more successful then those you come across tomorrow when you hit their age, so walk with confidence and leverage your instincts during discussions...and it sounds like you have financing pre-approval already in order so anyone giving you crap doesn't deserve the commission from your acquisition anyway

But it sounds like a combination of things could work

They are largely deceptive and misinformed...this is a volatile and unhealthy combination.

@Mark Eichenlaub I'd like to take a stab at answering your quistions... for the past 3 years my W2 has been a combination of managing a 700k sq. ft. portfolio of Class A commercial office space, industrial, retail and more specifically, right now 30 credit union locations.