I am new to Real Estate game and I really appreciate any help I can get. I am buying my first rental property. Here is my situation...I am interested in a multifamily house (Triplex) with a list price of $200000. I compared the subject property to similar (same number of beds/baths, similar sqft) properties and they were recently sold between $145000 - $165000. So where do you all think I should start negotiating the purchase price ? Are there any techniques to negotiate a fair purchase price?
BTW..This property meets all of my criteria which is: 1. Cap rate between 8 - 10%, 2. Cash flow: 150 - 200/month/ unit, 3. Tenants pays all utilities, 4. close to public transportation, 5. Class B property. Am i am missing any important criteria ? Any help is much appreciated.
Is this a bank owned property? Were the properties that were recently sold bank owned and therefore much cheaper than the property you are looking at? Are the conditions the same? Just seems odd that it's listed at $200k and the comps are $35k-55k lower. Seems over priced if your looking at everything right.