Will this influence your offer price
Hi,
I am considering purchase of four unit property, Currently I am going through price negotiation. This is a renovated fourplex with rents of two for 550 each and rents for other two are at 600 each. Each owner pays their own utilities. Now the two percent rule leads to maximum purcahse price is 115000. (Total rent * 50)
When I checked zillow I am seeing the average price of SFH in the neighborhood is 35000. Now with that scenario I would like to have experts' opinion to see if you had this situation will the neighborhood house price influence your decision to make offer of this property? I need some advice on this. Also does the neighborhood price going to influence the buyer when I decide to sell.
Thanks