Putting in my first offer

[Gil Pang]

Hi all,  

i'm putting in my first offer on a 2 family home.  My goal is to buy and hold for cashflow.  (possible go section 8 route).

seller list price is 45k , i put in offer at 35k.  sell said to meet in middle at 40k.  I countered at 37k and i was told 40k is sellers bottom line.  im going to wait a few days and see if they get desperate and counter below 40k.  

Assessed value on home is 40K but there is some repairs/rehabs that need to be done from the initial visit.

- unit 1 ( 2 bed , 1 bath) currently rented for $625
 - unit 2 (3 bed , 1 bath) vacant (aproxx 750) (but section 8 , possible 1,071?)

one of the furnaces should be replaced as its quite old (assuming 1.5k for furnace & labor)
paint job needs to be done throughout the whole unit of unit 2 (assuming 800/1k)
outside of the house will need a new paint job (assuming 1k)
front porch area is pretty old (500 - 1k) - may leave it as is if i can just patch it up

**not to mention probably little things i will need to do to get it section 8 ready**

so my questions are:
1.  Since i'm a buy and hold investor (how much weight do i put on entry/purchase price)?
2.  how much weight to i put on future equity appreciation ( this area has not appreciated much in the past 5+ years)
3. COC ROI is pretty good even at 40k purchase price
4.  if fair market rent for a 3 bed is 1,071 on the website, will section 8 definitely that much?

im a newbie so excuse some of the stupid questions.  thanks in advance!

[Gil Pang]

Just to give you an update, seller accepted by 37k offer! Guess the waiting game paid off!