<prompt> Human: I have the opportunity to buy a duplex in our town. It is appraised at 93K, I know the seller and can get it for 85K. It generates about 1250 a month for the two units. I will need to put at least 20 down for the loan. I currently owe less than 30K at my primary home. Thoughts on if I should I 1 buy the rental 2 pay off my house 3 do something else...? Thanks  <response>: so 68k loan is about 350mo for PI. factor in taxes and stuff and it seems you can be making about 600mo profit with the rent youll get. so with a 17k down payment closing cost 21K investment. you stand to make a profit of about 7.2k per year. or about 34 on your initial 21k investment. thats not bad. just make sure you can be a landlord and deal with the stuff that happens. and properly plan for maintenance and repairs and vacancy. 