Need Help with Counter Offer!
Hey everyone I could really use some help with this one. I have offered on a duplex with the figures below and seem to be up against a stiff necked seller. Rents are low and current market does allow for an increase of $100-$200 per unit. This would be my first deal and in my surrounding area prices like these are non existent. Just wondering if I should really play hard ball or take the deal to gain experience? Any advice as how to counter back would be great!
List Price: $105,000
Down payment: 25%
Unit one (2/1) Rent as of now: $500
Unit two(1/1) Rent as of now: $350
Total :$850
My offer: $90,000 and seller pay appraisal fee
Seller Counter: $103,000 and would pay appraisal at closing as long as deal goes through
I ran all my numbers at max pay $95k and would cash flow after all expenses $224, the variable would be at those numbers I'd have it professionally managed. I can basically get the same cash flow at the $103k but would have to manage myself, which I was highly thinking of doing anyway but my COC would be 7.61% which I think is good for my first deal
Agent says this is as low as he will go, and would not advise a counter to this. But I want to counter! Thats it in a nutshell I think, any help would be great thank you!