First time buying

[Lindsay Repp]

Im a first time investor and negotiating my first deal. the property I'm interested in, a 4 plex, original asking price 194,000. after a bit of back and forth and a renovations estimate of 13,000. my current offer is 172,000. His counter was 180,000. The property has a cash flow of 12000 a year approx. Just looking for a bit of advice. He's been trying to sell since 2012. I'm going with an FHA loan. Do I stick to my guns at 172 or come up?

[Chris Erwin]

@Lindsay Repp

Are you looking to just flip this property, or buy and hold? If you are looking to buy and hold, there are properties that could provide a far better cap rate for you.