Hey BP community! Newbie investor from San Juan, Puerto Rico here. I'm currently making an offer on a property I like very much. It's walking distance from where I rent and the beach in a cool up and coming neighborhood full of restaurants, shops and bars. It would be great for rentals and airbnb. Doing the numbers I could rent it and earn $250 in cashflow after covering expenses and more if used for airbnb. It is priced at $70,000 or better offer, owners are older sisters and got it by inheritance. Also, the kitchen needs to be completely redone. Some mom and daughter lawyers are handling these sisters case and are trying to sell they're properties so they're acting as the real estate agents.
It will be financed at 80%. My budget is 55K but want to lowball offer for 40K just to see how low I can get it for since my current cash is limited. I would still definitely buy the property for 55k but don't want to max out my budget without trying to get a better offer. Is asking for 40K wise? It represents 57% of the asking price. My plan was to offer 40k but also instruct the lawyer selling it, that if the sisters declined, to ask for 45k and then 50k until 55k. Is this wise? The other option I guess is to just offer 50k or the max 55k from the start so I eliminate the chance of another buyer coming in. I really like this opportunity and would not like to miss this chance!
Any recommendations are welcomed! Hope everyone has a great 2018!!
D4 - #100DaysOfRealEstate
Hi: hope it works out for you seems like a great deal. Im also a newbie at this but in my opinion I wouldn't tell the lawyers my max price. Here in PR its more than likely that the lawyers are family friends and would tell their client your max price. I personally would offer a bit more, maybe 42 or 43 it has a better ring to it..lol. good luck!!
Hey @Osvaldo Legrand ! Thanks for the tip. In this case I think the lawyers are not related but maybe saying something below the max price is a good bet just to make sure. And 42 or 43 does have a better ring to it instead of just a flat 40. Will keep you posted to what happens :) good to know there are fellow boricuas here. Have a good one!
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