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.
Rents: $1,200 per unit
2 – 2 beds units
Age of roof unknown
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.
You never want to be a motivated buyer. If the numbers don't work for your investment strategy, you may want to pass on the deal. Define what your investment strategy will be and the Net Cap you want and do not deviate from your strategy, or it will could cost you in the long run.
Thank you Steven.
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