So I’m looking at 2 unit home with parking listed at 114,999 after 5,000 price reduction on market 46 days ARV 249,000 needs about 75k in rehab. I’n going to offer 85,000. Doesn’t anyone see this as a good or bad offer ?

@Kenneth Liz if it's an offer that makes the numbers work for you, it's a good offer. Just as important, is if the seller thinks it's a good offer. You'll have to wait for that answer 😀

@Jason D. its a foreclosure bank owned. What are my chances looking like ?

@Jason D. I actually told my realto 80 no more then 88 or should I be willing to budge a bit more ?

@Kenneth Liz honestly?? Slim. Generally there is some, but very little, negotiating room when it comes to bank owned properties

@Kenneth Liz only offer what makes sense to you. Theres no reason to pay to much to lose in the end....

@Jason D. I mean I’d like to cash out refinance on the deal. So still tryna figure out what make sense.

@Kenneth Liz Hi Kenneth, Sounds like you want to hold and rent them. You didn't mention what the rental prices would be nor any of your monthly costs such as insurance and taxes. How much do you want to cash flow each month? Its very difficult to know if your offer makes sense when so many pieces of the math are missing. Have you tried using a BP calculator? They are very helpful for discovering what your offer strategy should be. Hope this helps you. Regards, Johnny Napier

At $115k you tend to make $50k. Nothing wrong with that. Not sure what your motivation is to get it at $80k. You may lose the deal if you try to get it for too low. And if its bank owned your chances are low of getting that kind of reduction. This is your first deal. Focus on the logistics of actually doing the fix and flip or hold.

@Jim Pellerin I’m looking to hold and rent and refi. Would like to have some money when I cashout.

@Johnny Napier hi Johnny. I could get about 2300 from both units. haven checked insurance cost thanks to you I will. The taxes would 722. They are now standing firm on 92,900

@Jim Pellerin they countered at 99,000 I offered 87 they came down to 92900 with 2800 earnest money. So I offered 88 with 4K earnest. They rejected. Am I still at a win for 92900

@Kenneth Liz That's amazing.  I thought the deal was good at $115K so you just made some extra margin. Close the deal and focus on the next step of rehabbing within your estimated budget.

@Jim Pellerin I was going to have some cash with I cash out refi for another deal. If I can get the job with in budget then I’m at 68% purchase fix.

@Jim Pellerin I’ll have to find a 80% refi some where

Try a local bank or credit union to get 80%.  Sounds like you have a keeper to me.  If you re-fi for 200k, you are still over the 1% rule.  Good luck on the rehab.

@Johnny Napier @Jim Pellerin ***update*** deal taken. 92300 waiting on contracts. Thanks for the help here

Good luck.  Have fun!