Help to Analyze a Deal

[Helen Kolton]

I am in the process of looking for my first multi.  They asking $260K. Before I left they asked me what do I think about the price. I said that looking at the rents it seems its a bit overpriced. I am looking more at $230K. They said that its too low. I left and submitted my offer anyway. My agent just called me to tell me that they countered with $250. They said that they have a bigger offer on the table.  Please advice.

Price $250,000

2 Family

Rents: $1,200 per unit

2 – 2 beds units

Brick

Age of roof unknown

Taxes: 5,300

Age of the property: 72

Garage and Driveway

Nothing to do but to move in (unless you want to update the kitchen)

Very well taken care of

Used to be oil tank but now removed and converted to Gas

1 meter for both units – water and gas (the seller splits the bill between two tenants)

1 unit if rented at $1,200

1 unit is vacant

The roof is still good but in the next 5 years might need some work.

Thank you