Based on the figures you've shared, the deal looks promising, but a lot hinges on verifying your renovation costs and confirming the true ARV (After Repair Value).

Both options are good, but ultimately it may depend on location, opportunity, and how much money you're able to save up and/or are willing to earmark for repairs.

I've been looking to stay around 150k so I have room to repair and cover unforeseen issues.

Because this is our first deal we want to try to avoid a lot of potential capital expense on repairs or rehabs.

They overpaid on seller financing terms, assumed higher rents than they could achieve, and didn't budget enough for repairs or capex.

We have the 25% downpayment for the first  Single family residence that would allow a mortgage note of $1,050 per month and rent for $1750 and have a cash flow best case  $700 per month assuming no vacancy/repair ect.

I just need 150k, and I will manage the rest of the repairs myself.

Quote from @Justin McCarthy: We had a refrigerator that needed repair.

I also underestimated how often unexpected costs pop up—those surprise repairs really added up, so now I always budget extra.For my first multifamily, I dove in a bit too quickly and didn’t fully understand the financing nuances and ongoing management challenges.

The generalized slang of "buy under market value" is a short form way of saying "buy at a price that affords correct margin to effect what repairs and problem solving is necessary with an appropriate profit margin and carried costs to make it a net profitable venture".