But I'll do the best I can to help from reading what you posted based on price it seems good but there's still a lot of unknowns, since your house hacking and it's a duplex this might be common sense but please check if you ever decide to sell the property would it be sold as one collective property for 150k or separate I mention this because it seems like you'll be using a hard money lender.Also when it comes to rehab if you don't feel comfortable estimating the rehab do what I have done contact several rehabbers and show them the property and get a quote estimate that way.Along with this to eliminate any doubt the most important information (depending on your exit strategy) is the ARV you generally get this information from realtors to see what similar properties have sold and how long does a similar property take to sell.

I have no credit card debt, just student loans which are paid just like they should be.   

If you are going to finance it, the majority of banks will not lend if you don't have experience no matter how good the debt service is.

I am not sure if I want to do this... we are in our early 60's live debt free...except for college for our youngest daughter...and I am wondering if a credit union would be are best option or other source.Thank youVictoria

I will just assume NOI is correct, based off the $1.39MM loan, that would mean $80K in debt services ($6,665 x 12), leaving a $-31.2K cash flow a year, that makes no sense hahaNow we have cash flow for year three, we get a -6.7% cash on cash return, again makes no senseUsing year 3 sale price as an example ($2.48MM) and the 5% cap rate listed, this means annual NOI is $124KDebt service is $80K, leaving $44K in cash flow, can you confirm this?

@Jon Quigley My experience is that banks look at your total debt to income.  

But you can't give any guarantees to the seller.If you leave the tenant buyer to their own devices and do not consul them on improving their FICO score and their debt to income   But doesn't look good for you as a lease option agentI recommend you look at upgrademycredit.com and ask for Blair Warner, who has a huge amount of experience helping people increase their FICO Score, and in  loan origination in generalAnd he resides in the great state of Texas, but does increasing of FICO score consulting business in all 50 states.

Lots of great people on BP some very experienced folks willing to share.. but they are not going to do it for you or spend hours explaining it to you verbatim like a paid coach will.If you don't have the money for coaching then by all means don't go into debt for it.

The other problem is we are currently doing a cash out refinance on the property and putting it on the market, would eliminate that.

This allows us to be able to support the mortgages till the rental income is able to cover the debt.