Deal Analysis - Need Help! Is it worth haggling over 6K??
Hi all, I need some help analyzing a potential deal. I will provide the basics of the scenario:
2 properties for 1 price:
Sale Price : $56000 vs $50000
Total rent : $1450
Vacancy (8%) : $116 (although both properties tenanted and staying, included in the costs)
Operating Expenses : $408
Net income: $926
Cash Flow Minus Mortgage @ $56,000 = $625 Cash Flow Minus Mortgage @$50,000 = $657
I had 50K in mind as purchase price, seller says he's at 56K and seems to be pretty firm, should I really be concerned about haggling over 6K when its only going to result in $32 cash flow difference? Seems like I would be able to recoup that 6K rather quickly, within a year if my math is right. Any help and input is much appreciated!