JyotinTo summarize: If you are interested in a business opportunity and are an independent broker or a real estate attorney in Florida, Ohio or North Carolina, DM me.

The proper way to approach this appraisal problem is (summarized below):* find reasonably similar comps - find relatively recent duplex sales in the Subject's market area and adjust for differences, based on market response (i.e. how much more/less buyers would typically pay for certain characteristics like size of units and lot, location, quality/condition, etc).* In the absence of similar comps - go back in time to find any similar comps, no matter how long ago and adjust for market trend differences (appreciation, etc), as well as other adjustments as typical (size, bed/bath, condition/quality, location, etc).* Go to nearby market areas/neighborhoods and find reasonably similar duplex sales and adjust for market area/neighborhood differences as required - along with the other adjustments.* Find reasonable 3 or 4 unit (not more than 4, and they can use sfr's, but those are typically not as good for comparison.

Great summarization, thank you for sharing. 

All of this can be summarized as, "this strategy will improve your cash flow and give "some" appreciation but not the same appreciation as officially converting the home to a duplex". 3.

Summarize I do not believe $700 is close to enough.  

.### Financial Impact of a 5-Year Balloon PaymentNow, let's summarize your financials with this balloon payment setup:- **Total received from monthly payments over 5 years:** $83,669.40.- **Balloon payment after 5 years:** $201,832.48.- **Initial down payment:** $100,000.- **Total amount received:** $83,669.40 + $201,832.48 + $100,000 = $385,501.88.### Return on Investment (ROI)- **Total profit:** Total amount received - initial investment = $385,501.88 - $235,000 = $150,501.88.- **ROI over 5 years:** ($150,501.88 / $235,000) x 100 = 64.04%.### Annualized ROI (CAGR)To calculate the Compound Annual Growth Rate (CAGR) for the 5-year period:\[ CAGR = \left(\frac{Final\ Value}{Initial\ Value}\right)^{\frac{1}{Number\ of\ Years}} - 1 \]\[ CAGR = \left(\frac{385501.88}{235000}\right)^{\frac{1}{5}} - 1 \]Let's calculate this CAGR:\[ CAGR = \left(\frac{385501.88}{235000}\right)^{0.2} - 1 \]\[ CAGR \approx 1.1054 - 1 \]\[ CAGR \approx 0.1054 \text{ or } 10.54\% \]This 10.54% annualized return is substantially higher than the 3.03% from the 30-year term scenario.

I will do my best to summarize this as much as possible in an understandable format. :)BackgroundWe own a unit in a 16 unit cooperative (coop) building in Clearwater, FL.  

I've read through the contract and will summarize here with simplified numbers (not the actual numbers) what I believe the contract says and follow up with some questions for you more knowledgeable members:1) Purchase Price: $100k2) Initial Down Payment: $10K3) Buyer pays seller monthly payments based on 30 year amort of 90k at 5% which is $484/month4) Remaining principal balance to be paid off on the defined Closing Date (roughly 2 years from now)5) Buyer pays taxes and insurance6) Buyer to provide Seller a Loan Commitment from a Lender on or before the Closing Date7) Seller will transfer Deed when Buyer pays full Purchase Price8) Buyer will pay the Seller's existing monthly mortgage payment that exists on the property, which is $100/month, directly to the bank.

He probably just added everything up in a very summarized format and then came to the lump sum number, same way we would estimate expenses when analyzing a deal but I would expect a lot more detail from a contractor.

Of course, it looks like there is no real cash flow, but just the amount that you can deduct from your own outgoings.So to summarize, even if your figures are right, you'd be out of pocket something like $465/m instead of $900/m that your other tenants are paying.But if your figures aren't conservative enough, you could be out of pocket as much as your renters.Do you have any figures regarding your purchase price vs comparable ARV's?