Need $25k repairs (estimate) and ARV is about $260k.According to 70% rule.. my offer should be ($260k x70%) - $25k rehab = $157k.Again.. the offer seems WAY too low.. and there is no way me (or my agent) should waste time putting together an offer.What am I doing wrong here?

The more you borrow, the higher the returns but the greater the risk.A 50% mortgage would provide far better returns than paying all cash and it's extremely low risk.

I would also increase your vacancy, capex and repairs # at the minimum as they are very low.

Think of all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.

Switch to some sort of electric heat pump/minisplit.Staying with oil is the cheapest upfront costs, but I would assume more on going costs for maintenance and re-priming when the tenants don’t fill the oil tank.  

Even if my finders fee are low.

He has done all the work in the last 10 years to separate all the utilities so all he pays is th annual maintenance on the property.

we are seeing prices peak in the Portland market the big run up has happened.. but sales are still brisk and your right low end is still on fire.. my wife put a 250k condo in escrow yesterday.. but we were lamenting it took 30 days to get it sold instead of 30 seconds..

By the time you aad all the other expenses like furniture, maintenance, and property tax and adding all of your dept payment it's barely even a break even deal. 

He built them with low maintenance materials and just recently refurbished 1 of the duplex buildings with a new 40 year metal roof, new water heaters, refrigerators, dishwashers, stoves and AC units.The 2nd duplex still needs to be refurbished but is currently rented, so this gives the option of forced appreciation.