Updated 5 days ago on . Most recent reply
How will you structure this desl
I’m considering purchasing a package of 4 properties from an out-of-state investor who has never personally seen them.
I toured two of the properties that are currently listed, and both are in very poor condition. The layouts are problematic (very small bathrooms and ceilings around 6 ft), and both need full rehabs. One property recently had a tenant evicted, and the other failed a Section 8 inspection (no heat, non-functioning stove). On top of that, they seem significantly overpriced—close to double what I believe their actual value is.
The agent also mentioned two additional properties:
One is in semi-decent condition, but I haven’t seen it yet.
The other is in decent shape, has a tenant paying below-market rent, but the tenant seems stable and wants to stay.
Financing is another challenge—my lender won’t fund loans under $100k, so I’d need to pay cash for the first two properties. Realistically, I only have enough to buy one property outright and put a down payment on another.
Given all of this, I’m trying to figure out:
Whether this deal makes sense at all
How to approach pricing/negotiation with a seller who seems disconnected from the properties