Paid Over Market — Still a Great Deal? Assumed Loan + Seller-Financed Duplex in Ogde

[Nicholas Stevenson]

Hey everyone,

It’s been a while since I’ve posted here. I’ve followed BiggerPockets for years and finally decided to start buying after a lot of studying.

I had a strong year in crypto and wanted to use real estate to offset those gains while building long-term wealth. I know I’ll need to meet the hours and participation requirements to qualify as a real-estate professional, and I’m working toward that now.

Here’s my first duplex purchase — a creative structure that combines an assumed loan with seller financing in Ogden, Utah. Would love your feedback.

Property Overview

Address: 1033 37th Street, Ogden, UT

Duplex (Up/Down) – Each unit 3 bed / 1 bath

Purchase Price: $590,000 (about $20–30K over market)

Down Payment: $65K (~11%)

Financing: Assumed loan + seller carry

Blended Rate: ~3.4%

Condition: Turnkey, fully rented

Hold Goal: 10 years

Rents and Financing

Current Rent: $2,965 total ($1,245 lower / $1,720 upper)

Market Rent Potential: ~$3,300 total

All-In Payment (PITI + Seller Note): $2,271/month

Cash Flow: +$100/month now → +$400+ at market

Financing Details:

1st Loan (SPS): $237,879 @ 6.5% (~26 yrs left, assumed)

2nd Seller Carry: $287,121 @ 0.75% interest-only (7 yrs, extendable to 10 and definitely am going to be doing that)
Two separate notes → can refinance the first later without touching the carry.

Note: Taxes and insurance are already included in the SPS payment. I still listed them in expenses below for clarity, but if you’re running your own numbers, don’t double-count them.

Operating Expenses (Professionally Managed)

Property Management: 10% ($297/month)

Maintenance Reserve: 5% ($148/month)

Vacancy Allowance: 5% ($148/month)

Taxes & Insurance: $559/month (already included in mortgage payment)

Total Monthly Operating Costs (excluding double count): About $593

If you include them anyway, total would be about $1,152, but again — taxes and insurance are already baked into the payment.

Cash Flow Summary

Gross Income: $2,965 (current) / $3,300 (market)

Operating Expenses (excluding taxes/insurance): $593/month

Debt Service (mortgage + carry): $2,271/month

Net Cash Flow: +$101/month now, +$436/month at market rents

Cash-on-Cash Return: 1.9% now, around 8% at market rents

Why I Still Bought Over Market

Even though I paid about $25K over value, the creative financing saves roughly $10K per year in interest versus a new conventional loan. Over seven years that’s $100K+ saved, which easily offsets the higher purchase price.

Tax Strategy (Crypto Offset)

A cost-segregation study should allow about $145K (around 25% of the purchase price) for bonus depreciation.

At a 35% bracket, that’s roughly $50K in Year-1 tax savings — almost my entire down payment.

After depreciation, my effective cash basis in the deal is around $14K.

Deal Summary

Only $65K down on a $590K property (about 11%) = strong leverage

Blended 3.4% interest rate when market rates are 6–7%

Assumed first loan saves significant interest cost

Positive cash flow, professionally managed

3 bed / 1 bath units in a stable rental market

10-year appreciation at 3% annually = roughly $790K future value

Estimated $200K+ equity gain over 10 years (appreciation + paydown)

$50K+ Year-1 tax savings through cost segregation

Big Picture

Low down payment, cheap financing, hands-off management, and strong tax benefits make this a solid long-term hold. The numbers aren’t flashy now, but the financing and tax structure make it much better than it looks on paper.

Question for the community:

Am I missing something and got myself into a situation I shouldn’t want to be in?

Would you consider this a solid first duplex even with the $20–30K overpay?

And for those who’ve done cost segregation on smaller multifamily, did you hire a pro or handle it yourself?

— Nicholas Stevenson